[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2328 Enrolled Bill (ENR)]

        S.2328

                     One Hundred Fourteenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
           the fourth day of January, two thousand and sixteen


                                 An Act


 
To reauthorize and amend the National Sea Grant College Program Act, and 
                           for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
    (a) Short Title.--This Act may be cited as the ``Puerto Rico 
Oversight, Management, and Economic Stability Act'' or ``PROMESA''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Effective date.
Sec. 3. Severability.
Sec. 4. Supremacy.
Sec. 5. Definitions.
Sec. 6. Placement.
Sec. 7. Compliance with Federal laws.

       TITLE I--ESTABLISHMENT AND ORGANIZATION OF OVERSIGHT BOARD

Sec. 101. Financial Oversight and Management Board.
Sec. 102. Location of Oversight Board.
Sec. 103. Executive Director and staff of Oversight Board.
Sec. 104. Powers of Oversight Board.
Sec. 105. Exemption from liability for claims.
Sec. 106. Treatment of actions arising from Act.
Sec. 107. Budget and funding for operation of Oversight Board.
Sec. 108. Autonomy of Oversight Board.
Sec. 109. Ethics.

              TITLE II--RESPONSIBILITIES OF OVERSIGHT BOARD

Sec. 201. Approval of fiscal plans.
Sec. 202. Approval of budgets.
Sec. 203. Effect of finding of noncompliance with budget.
Sec. 204. Review of activities to ensure compliance with fiscal plan.
Sec. 205. Recommendations on financial stability and management 
          responsibility.
Sec. 206. Oversight Board duties related to restructuring.
Sec. 207. Oversight Board authority related to debt issuance.
Sec. 208. Required reports.
Sec. 209. Termination of Oversight Board.
Sec. 210. No full faith and credit of the United States.
Sec. 211. Analysis of pensions.
Sec. 212. Intervention in litigation.

                     TITLE III--ADJUSTMENTS OF DEBTS

Sec. 301. Applicability of other laws; definitions.
Sec. 302. Who may be a debtor.
Sec. 303. Reservation of territorial power to control territory and 
          territorial instrumentalities.
Sec. 304. Petition and proceedings relating to petition.
Sec. 305. Limitation on jurisdiction and powers of court.
Sec. 306. Jurisdiction.
Sec. 307. Venue.
Sec. 308. Selection of presiding judge.
Sec. 309. Abstention.
Sec. 310. Applicable rules of procedure.
Sec. 311. Leases.
Sec. 312. Filing of plan of adjustment.
Sec. 313. Modification of plan.
Sec. 314. Confirmation.
Sec. 315. Role and capacity of Oversight Board.
Sec. 316. Compensation of professionals.
Sec. 317. Interim compensation.

                   TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. Rules of construction.
Sec. 402. Right of Puerto Rico to determine its future political status.
Sec. 403. First minimum wage in Puerto Rico.
Sec. 404. Application of regulation to Puerto Rico.
Sec. 405. Automatic stay upon enactment.
Sec. 406. Purchases by territory governments.
Sec. 407. Protection from inter-debtor transfers.
Sec. 408. GAO report on Small Business Administration programs in Puerto 
          Rico.
Sec. 409. Congressional Task Force on Economic Growth in Puerto Rico.
Sec. 410. Report.
Sec. 411. Report on territorial debt.
Sec. 412. Expansion of HUBZones in Puerto Rico.
Sec. 413. Determination on debt.

           TITLE V--PUERTO RICO INFRASTRUCTURE REVITALIZATION

Sec. 501. Definitions.
Sec. 502. Position of Revitalization Coordinator.
Sec. 503. Critical projects.
Sec. 504. Miscellaneous provisions.
Sec. 505. Federal agency requirements.
Sec. 506. Judicial review.
Sec. 507. Savings clause.

                  TITLE VI--CREDITOR COLLECTIVE ACTION

Sec. 601. Creditor Collective action.
Sec. 602. Applicable law.

  TITLE VII--SENSE OF CONGRESS REGARDING PERMANENT, PRO-GROWTH FISCAL 
                                 REFORMS

Sec. 701. Sense of Congress regarding permanent, pro-growth fiscal 
          reforms.
SEC. 2. EFFECTIVE DATE.
    (a) In General.--Except as provided in subsection (b), this Act 
shall take effect on the date of the enactment of this Act.
    (b) Title III and Title VI.--
        (1) Title III shall apply with respect to cases commenced under 
    title III on or after the date of the enactment of this Act.
        (2) Titles III and VI shall apply with respect to debts, 
    claims, and liens (as such terms are defined in section 101 of 
    title 11, United States Code) created before, on, or after such 
    date.
SEC. 3. SEVERABILITY.
    (a) In General.--Except as provided in subsection (b), if any 
provision of this Act or the application thereof to any person or 
circumstance is held invalid, the remainder of this Act, or the 
application of that provision to persons or circumstances other than 
those as to which it is held invalid, is not affected thereby, provided 
that title III is not severable from titles I and II, and titles I and 
II are not severable from title III.
    (b) Uniformity.--If a court holds invalid any provision of this Act 
or the application thereof on the ground that the provision fails to 
treat similarly situated territories uniformly, then the court shall, 
in granting a remedy, order that the provision of this Act or the 
application thereof be extended to any other similarly situated 
territory, provided that the legislature of that territory adopts a 
resolution signed by the territory's governor requesting the 
establishment and organization of a Financial Oversight and Management 
Board pursuant to section 101.
SEC. 4. SUPREMACY.
    The provisions of this Act shall prevail over any general or 
specific provisions of territory law, State law, or regulation that is 
inconsistent with this Act.
SEC. 5. DEFINITIONS.
    In this Act--
        (1) Agreed accounting standards.--The term ``agreed accounting 
    standards'' means modified accrual accounting standards or, for any 
    period during which the Oversight Board determines in its sole 
    discretion that a territorial government is not reasonably capable 
    of comprehensive reporting that complies with modified accrual 
    accounting standards, such other accounting standards as proposed 
    by the Oversight Board.
        (2) Bond.--The term ``Bond'' means a bond, loan, letter of 
    credit, other borrowing title, obligation of insurance, or other 
    financial indebtedness for borrowed money, including rights, 
    entitlements, or obligations whether such rights, entitlements, or 
    obligations arise from contract, statute, or any other source of 
    law, in any case, related to such a bond, loan, letter of credit, 
    other borrowing title, obligation of insurance, or other financial 
    indebtedness in physical or dematerialized form of which the 
    issuer, obligor, or guarantor is the territorial government.
        (3) Bond claim.--The term ``Bond Claim'' means, as it relates 
    to a Bond--
            (A) right to payment, whether or not such right is reduced 
        to judgment, liquidated, unliquidated, fixed, contingent, 
        matured, unmatured, disputed, undisputed, legal, equitable, 
        secured, or unsecured; or
            (B) right to an equitable remedy for breach of performance 
        if such breach gives rise to a right to payment, whether or not 
        such right to an equitable remedy is reduced to judgment, 
        fixed, contingent, matured, unmatured, disputed, undisputed, 
        secured, or unsecured.
        (4) Budget.--The term ``Budget'' means the Territory Budget or 
    an Instrumentality Budget, as applicable.
        (5) Puerto rico.--The term ``Puerto Rico'' means the 
    Commonwealth of Puerto Rico.
        (6) Compliant budget.--The term ``compliant budget'' means a 
    budget that is prepared in accordance with--
            (A) agreed accounting standards; and
            (B) the applicable Fiscal Plan.
        (7) Covered territorial instrumentality.--The term ``covered 
    territorial instrumentality'' means a territorial instrumentality 
    designated by the Oversight Board pursuant to section 101 to be 
    subject to the requirements of this Act.
        (8) Covered territory.--The term ``covered territory'' means a 
    territory for which an Oversight Board has been established under 
    section 101.
        (9) Executive director.--The term ``Executive Director'' means 
    an Executive Director appointed under section 103(a).
        (10) Fiscal plan.--The term ``Fiscal Plan'' means a Territory 
    Fiscal Plan or an Instrumentality Fiscal Plan, as applicable.
        (11) Government of puerto rico.--The term ``Government of 
    Puerto Rico'' means the Commonwealth of Puerto Rico, including all 
    its territorial instrumentalities.
        (12) Governor.--The term ``Governor'' means the chief executive 
    of a covered territory.
        (13) Instrumentality budget.--The term ``Instrumentality 
    Budget'' means a budget for a covered territorial instrumentality, 
    designated by the Oversight Board in accordance with section 101, 
    submitted, approved, and certified in accordance with section 202.
        (14) Instrumentality fiscal plan.--The term ``Instrumentality 
    Fiscal Plan'' means a fiscal plan for a covered territorial 
    instrumentality, designated by the Oversight Board in accordance 
    with section 101, submitted, approved, and certified in accordance 
    with section 201.
        (15) Legislature.--The term ``Legislature'' means the 
    legislative body responsible for enacting the laws of a covered 
    territory.
        (16) Modified accrual accounting standards.--The term 
    ``modified accrual accounting standards'' means recognizing 
    revenues as they become available and measurable and recognizing 
    expenditures when liabilities are incurred, in each case as defined 
    by the Governmental Accounting Standards Board, in accordance with 
    generally accepted accounting principles.
        (17) Oversight board.--The term ``Oversight Board'' means a 
    Financial Oversight and Management Board established in accordance 
    with section 101.
        (18) Territorial government.--The term ``territorial 
    government'' means the government of a covered territory, including 
    all covered territorial instrumentalities.
        (19) Territorial instrumentality.--
            (A) In general.--The term ``territorial instrumentality'' 
        means any political subdivision, public agency, 
        instrumentality--including any instrumentality that is also a 
        bank--or public corporation of a territory, and this term 
        should be broadly construed to effectuate the purposes of this 
        Act.
            (B) Exclusion.--The term ``territorial instrumentality'' 
        does not include an Oversight Board.
        (20) Territory.--The term ``territory'' means--
            (A) Puerto Rico;
            (B) Guam;
            (C) American Samoa;
            (D) the Commonwealth of the Northern Mariana Islands; or
            (E) the United States Virgin Islands.
        (21) Territory budget.--The term ``Territory Budget'' means a 
    budget for a territorial government submitted, approved, and 
    certified in accordance with section 202.
        (22) Territory fiscal plan.--The term ``Territory Fiscal Plan'' 
    means a fiscal plan for a territorial government submitted, 
    approved, and certified in accordance with section 201.
SEC. 6. PLACEMENT.
    The Law Revision Counsel is directed to place this Act as chapter 
20 of title 48, United States Code.
SEC. 7. COMPLIANCE WITH FEDERAL LAWS.
    Except as otherwise provided in this Act, nothing in this Act shall 
be construed as impairing or in any manner relieving a territorial 
government, or any territorial instrumentality thereof, from compliance 
with Federal laws or requirements or territorial laws and requirements 
implementing a federally authorized or federally delegated program 
protecting the health, safety, and environment of persons in such 
territory.

       TITLE I--ESTABLISHMENT AND ORGANIZATION OF OVERSIGHT BOARD

    SEC. 101. FINANCIAL OVERSIGHT AND MANAGEMENT BOARD.
    (a) Purpose.--The purpose of the Oversight Board is to provide a 
method for a covered territory to achieve fiscal responsibility and 
access to the capital markets.
    (b) Establishment.--
        (1) Puerto rico.--A Financial Oversight and Management Board is 
    hereby established for Puerto Rico.
        (2) Constitutional basis.--The Congress enacts this Act 
    pursuant to article IV, section 3 of the Constitution of the United 
    States, which provides Congress the power to dispose of and make 
    all needful rules and regulations for territories.
    (c) Treatment.--An Oversight Board established under this section--
        (1) shall be created as an entity within the territorial 
    government for which it is established in accordance with this 
    title; and
        (2) shall not be considered to be a department, agency, 
    establishment, or instrumentality of the Federal Government.
    (d) Oversight of Territorial Instrumentalities.--
        (1) Designation.--
            (A) In general.--An Oversight Board, in its sole discretion 
        at such time as the Oversight Board determines to be 
        appropriate, may designate any territorial instrumentality as a 
        covered territorial instrumentality that is subject to the 
        requirements of this Act.
            (B) Budgets and reports.--The Oversight Board may require, 
        in its sole discretion, the Governor to submit to the Oversight 
        Board such budgets and monthly or quarterly reports regarding a 
        covered territorial instrumentality as the Oversight Board 
        determines to be necessary and may designate any covered 
        territorial instrumentality to be included in the Territory 
        Budget; except that the Oversight Board may not designate a 
        covered territorial instrumentality to be included in the 
        Territory Budget if applicable territory law does not require 
        legislative approval of such covered territorial 
        instrumentality's budget.
            (C) Separate instrumentality budgets and reports.--The 
        Oversight Board in its sole discretion may or, if it requires a 
        budget from a covered territorial instrumentality whose budget 
        does not require legislative approval under applicable 
        territory law, shall designate a covered territorial 
        instrumentality to be the subject of an Instrumentality Budget 
        separate from the applicable Territory Budget and require that 
        the Governor develop such an Instrumentality Budget.
            (D) Inclusion in territory fiscal plan.--The Oversight 
        Board may require, in its sole discretion, the Governor to 
        include a covered territorial instrumentality in the applicable 
        Territory Fiscal Plan. Any covered territorial instrumentality 
        submitting a separate Instrumentality Fiscal Plan must also 
        submit a separate Instrumentality Budget.
            (E) Separate instrumentality fiscal plans.--The Oversight 
        Board may designate, in its sole discretion, a covered 
        territorial instrumentality to be the subject of an 
        Instrumentality Fiscal Plan separate from the applicable 
        Territory Fiscal Plan and require that the Governor develop 
        such an Instrumentality Fiscal Plan. Any covered territorial 
        instrumentality submitting a separate Instrumentality Fiscal 
        Plan shall also submit a separate Instrumentality Budget.
        (2) Exclusion.--
            (A) In general.--An Oversight Board, in its sole 
        discretion, at such time as the Oversight Board determines to 
        be appropriate, may exclude any territorial instrumentality 
        from the requirements of this Act.
            (B) Treatment.--A territorial instrumentality excluded 
        pursuant to this paragraph shall not be considered to be a 
        covered territorial instrumentality.
    (e) Membership.--
        (1) In general.--
            (A) The Oversight Board shall consist of seven members 
        appointed by the President who meet the qualifications 
        described in subsection (f) and section 109(a).
            (B) The Board shall be comprised of one Category A member, 
        one Category B member, two Category C members, one Category D 
        member, one Category E member, and one Category F member.
        (2) Appointed members.--
            (A) The President shall appoint the individual members of 
        the Oversight Board, of which--
                (i) the Category A member should be selected from a 
            list of individuals submitted by the Speaker of the House 
            of Representatives;
                (ii) the Category B member should be selected from a 
            separate, non-overlapping list of individuals submitted by 
            the Speaker of the House of Representatives;
                (iii) the Category C members should be selected from a 
            list submitted by the Majority Leader of the Senate;
                (iv) the Category D member should be selected from a 
            list submitted by the Minority Leader of the House of 
            Representatives;
                (v) the Category E member should be selected from a 
            list submitted by the Minority Leader of the Senate; and
                (vi) the Category F member may be selected in the 
            President's sole discretion.
            (B) After the President's selection of the Category F Board 
        member, for purposes of subparagraph (A) and within a timely 
        manner--
                (i) the Speaker of the House of Representatives shall 
            submit two non-overlapping lists of at least three 
            individuals to the President; one list shall include three 
            individuals who maintain a primary residence in the 
            territory or have a primary place of business in the 
            territory;
                (ii) the Senate Majority Leader shall submit a list of 
            at least four individuals to the President;
                (iii) the Minority Leader of the House of 
            Representatives shall submit a list of at least three 
            individuals to the President; and
                (iv) the Minority Leader of the Senate shall submit a 
            list of at least three individuals to the President.
            (C) If the President does not select any of the names 
        submitted under subparagraphs (A) and (B), then whoever 
        submitted such list may supplement the lists provided in this 
        subsection with additional names.
            (D) The Category A member shall maintain a primary 
        residence in the territory or have a primary place of business 
        in the territory.
            (E) With respect to the appointment of a Board member in 
        Category A, B, C, D, or E, such an appointment shall be by and 
        with the advice and consent of the Senate, unless the President 
        appoints an individual from a list, as provided in this 
        subsection, in which case no Senate confirmation is required.
            (F) In the event of a vacancy of a Category A, B, C, D, or 
        E Board seat, the corresponding congressional leader referenced 
        in subparagraph (A) shall submit a list pursuant to this 
        subsection within a timely manner of the Board member's 
        resignation or removal becoming effective.
            (G) With respect to an Oversight Board for Puerto Rico, in 
        the event any of the 7 members have not been appointed by 
        September 1, 2016, then the President shall appoint an 
        individual from the list for the current vacant category by 
        September 15, 2016, provided that such list includes at least 2 
        individuals per vacancy who meet the requirements set forth in 
        subsection (f) and section 109, and are willing to serve.
        (3) Ex officio member.--The Governor, or the Governor's 
    designee, shall be an ex officio member of the Oversight Board 
    without voting rights.
        (4) Chair.--The voting members of the Oversight Board shall 
    designate one of the voting members of the Oversight Board as the 
    Chair of the Oversight Board (referred to hereafter in this Act as 
    the ``Chair'') within 30 days of the full appointment of the 
    Oversight Board.
        (5) Term of service.--
            (A) In general.--Each appointed member of the Oversight 
        Board shall be appointed for a term of 3 years.
            (B) Removal.--The President may remove any member of the 
        Oversight Board only for cause.
            (C) Continuation of service until successor appointed.--
        Upon the expiration of a term of office, a member of the 
        Oversight Board may continue to serve until a successor has 
        been appointed.
            (D) Reappointment.--An individual may serve consecutive 
        terms as an appointed member, provided that such reappointment 
        occurs in compliance with paragraph (6).
        (6) Vacancies.--A vacancy on the Oversight Board shall be 
    filled in the same manner in which the original member was 
    appointed.
    (f) Eligibility for Appointments.--An individual is eligible for 
appointment as a member of the Oversight Board only if the individual--
        (1) has knowledge and expertise in finance, municipal bond 
    markets, management, law, or the organization or operation of 
    business or government; and
        (2) prior to appointment, an individual is not an officer, 
    elected official, or employee of the territorial government, a 
    candidate for elected office of the territorial government, or a 
    former elected official of the territorial government.
    (g) No Compensation for Service.--Members of the Oversight Board 
shall serve without pay, but may receive reimbursement from the 
Oversight Board for any reasonable and necessary expenses incurred by 
reason of service on the Oversight Board.
    (h) Adoption of Bylaws for Conducting Business of Oversight 
Board.--
        (1) In general.--As soon as practicable after the appointment 
    of all members and appointment of the Chair, the Oversight Board 
    shall adopt bylaws, rules, and procedures governing its activities 
    under this Act, including procedures for hiring experts and 
    consultants. Such bylaws, rules, and procedures shall be public 
    documents, and shall be submitted by the Oversight Board upon 
    adoption to the Governor, the Legislature, the President, and 
    Congress. The Oversight Board may hire professionals as it 
    determines to be necessary to carry out this Act.
        (2) Activities requiring approval of majority of members.--
    Under the bylaws adopted pursuant to paragraph (1), the Oversight 
    Board may conduct its operations under such procedures as it 
    considers appropriate, except that an affirmative vote of a 
    majority of the members of the Oversight Board's full appointed 
    membership shall be required in order for the Oversight Board to 
    approve a Fiscal Plan under section 201, to approve a Budget under 
    section 202, to cause a legislative act not to be enforced under 
    section 204, or to approve or disapprove an infrastructure project 
    as a Critical Project under section 503.
        (3) Adoption of rules and regulations of territorial 
    government.--The Oversight Board may incorporate in its bylaws, 
    rules, and procedures under this subsection such rules and 
    regulations of the territorial government as it considers 
    appropriate to enable it to carry out its activities under this Act 
    with the greatest degree of independence practicable.
        (4) Executive session.--Upon a majority vote of the Oversight 
    Board's full voting membership, the Oversight Board may conduct its 
    business in an executive session that consists solely of the 
    Oversight Board's voting members and any professionals the 
    Oversight Board determines necessary and is closed to the public, 
    but only for the business items set forth as part of the vote to 
    convene an executive session.
    SEC. 102. LOCATION OF OVERSIGHT BOARD.
    The Oversight Board shall have an office in the covered territory 
and additional offices as it deems necessary. At any time, any 
department or agency of the United States may provide the Oversight 
Board use of Federal facilities and equipment on a reimbursable or non-
reimbursable basis and subject to such terms and conditions as the head 
of that department or agency may establish.
    SEC. 103. EXECUTIVE DIRECTOR AND STAFF OF OVERSIGHT BOARD.
    (a) Executive Director.--The Oversight Board shall have an 
Executive Director who shall be appointed by the Chair with the consent 
of the Oversight Board. The Executive Director shall be paid at a rate 
determined by the Oversight Board.
    (b) Staff.--With the approval of the Chair, the Executive Director 
may appoint and fix the pay of additional personnel as the Executive 
Director considers appropriate, except that no individual appointed by 
the Executive Director may be paid at a rate greater than the rate of 
pay for the Executive Director unless the Oversight Board provides for 
otherwise. The staff shall include a Revitalization Coordinator 
appointed pursuant to Title V of this Act. Any such personnel may 
include private citizens, employees of the Federal Government, or 
employees of the territorial government, provided, however, that the 
Executive Director may not fix the pay of employees of the Federal 
Government or the territorial government.
    (c) Inapplicability of Certain Employment and Procurement Laws.--
The Executive Director and staff of the Oversight Board may be 
appointed and paid without regard to any provision of the laws of the 
covered territory or the Federal Government governing appointments and 
salaries. Any provision of the laws of the covered territory governing 
procurement shall not apply to the Oversight Board.
    (d) Staff of Federal Agencies.--Upon request of the Chair, the head 
of any Federal department or agency may detail, on a reimbursable or 
nonreimbursable basis, and in accordance with the Intergovernmental 
Personnel Act of 1970 (5 U.S.C. 3371-3375), any of the personnel of 
that department or agency to the Oversight Board to assist it in 
carrying out its duties under this Act.
    (e) Staff of Territorial Government.--Upon request of the Chair, 
the head of any department or agency of the covered territory may 
detail, on a reimbursable or nonreimbursable basis, any of the 
personnel of that department or agency to the Oversight Board to assist 
it in carrying out its duties under this Act.
    SEC. 104. POWERS OF OVERSIGHT BOARD.
    (a) Hearings and Sessions.--The Oversight Board may, for the 
purpose of carrying out this Act, hold hearings, sit and act at times 
and places, take testimony, and receive evidence as the Oversight Board 
considers appropriate. The Oversight Board may administer oaths or 
affirmations to witnesses appearing before it.
    (b) Powers of Members and Agents.--Any member or agent of the 
Oversight Board may, if authorized by the Oversight Board, take any 
action that the Oversight Board is authorized to take by this section.
    (c) Obtaining Official Data.--
        (1) From federal government.--Notwithstanding sections 552 
    (commonly known as the Freedom of Information Act), 552a (commonly 
    known as the Privacy Act of 1974), and 552b (commonly known as the 
    Government in the Sunshine Act) of title 5, United States Code, the 
    Oversight Board may secure directly from any department or agency 
    of the United States information necessary to enable it to carry 
    out this Act, with the approval of the head of that department or 
    agency.
        (2) From territorial government.--Notwithstanding any other 
    provision of law, the Oversight Board shall have the right to 
    secure copies, whether written or electronic, of such records, 
    documents, information, data, or metadata from the territorial 
    government necessary to enable the Oversight Board to carry out its 
    responsibilities under this Act. At the request of the Oversight 
    Board, the Oversight Board shall be granted direct access to such 
    information systems, records, documents, information, or data as 
    will enable the Oversight Board to carry out its responsibilities 
    under this Act. The head of the entity of the territorial 
    government responsible shall provide the Oversight Board with such 
    information and assistance (including granting the Oversight Board 
    direct access to automated or other information systems) as the 
    Oversight Board requires under this paragraph.
    (d) Obtaining Creditor Information.--
        (1) Upon request of the Oversight Board, each creditor or 
    organized group of creditors of a covered territory or covered 
    territorial instrumentality seeking to participate in voluntary 
    negotiations shall provide to the Oversight Board, and the 
    Oversight Board shall make publicly available to any other 
    participant, a statement setting forth--
            (A) the name and address of the creditor or of each member 
        of an organized group of creditors; and
            (B) the nature and aggregate amount of claims or other 
        economic interests held in relation to the issuer as of the 
        later of--
                (i) the date the creditor acquired the claims or other 
            economic interests or, in the case of an organized group of 
            creditors, the date the group was formed; or
                (ii) the date the Oversight Board was formed.
        (2) For purposes of this subsection, an organized group shall 
    mean multiple creditors that are--
            (A) acting in concert to advance their common interests, 
        including, but not limited to, retaining legal counsel to 
        represent such multiple entities; and
            (B) not composed entirely of affiliates or insiders of one 
        another.
        (3) The Oversight Board may request supplemental statements to 
    be filed by each creditor or organized group of creditors 
    quarterly, or if any fact in the most recently filed statement has 
    changed materially.
    (e) Gifts, Bequests, and Devises.--The Oversight Board may accept, 
use, and dispose of gifts, bequests, or devises of services or 
property, both real and personal, for the purpose of aiding or 
facilitating the work of the Oversight Board. Gifts, bequests, or 
devises of money and proceeds from sales of other property received as 
gifts, bequests, or devises shall be deposited in such account as the 
Oversight Board may establish and shall be available for disbursement 
upon order of the Chair, consistent with the Oversight Board's bylaws, 
or rules and procedures. All gifts, bequests or devises and the 
identities of the donors shall be publicly disclosed by the Oversight 
Board within 30 days of receipt.
    (f) Subpoena Power.--
        (1) In general.--The Oversight Board may issue subpoenas 
    requiring the attendance and testimony of witnesses and the 
    production of books, records, correspondence, memoranda, papers, 
    documents, electronic files, metadata, tapes, and materials of any 
    nature relating to any matter under investigation by the Oversight 
    Board. Jurisdiction to compel the attendance of witnesses and the 
    production of such materials shall be governed by the statute 
    setting forth the scope of personal jurisdiction exercised by the 
    covered territory, or in the case of Puerto Rico, 32 L.P.R.A. App. 
    III. R. 4. 7., as amended.
        (2) Failure to obey a subpoena.--If a person refuses to obey a 
    subpoena issued under paragraph (1), the Oversight Board may apply 
    to the court of first instance of the covered territory. Any 
    failure to obey the order of the court may be punished by the court 
    in accordance with civil contempt laws of the covered territory.
        (3) Service of subpoenas.--The subpoena of the Oversight Board 
    shall be served in the manner provided by the rules of procedure 
    for the courts of the covered territory, or in the case of Puerto 
    Rico, the Rules of Civil Procedure of Puerto Rico, for subpoenas 
    issued by the court of first instance of the covered territory.
    (g) Authority To Enter Into Contracts.--The Executive Director may 
enter into such contracts as the Executive Director considers 
appropriate (subject to the approval of the Chair) consistent with the 
Oversight Board's bylaws, rules, and regulations to carry out the 
Oversight Board's responsibilities under this Act.
    (h) Authority To Enforce Certain Laws of the Covered Territory.--
The Oversight Board shall ensure the purposes of this Act are met, 
including by ensuring the prompt enforcement of any applicable laws of 
the covered territory prohibiting public sector employees from 
participating in a strike or lockout. In the application of this 
subsection, with respect to Puerto Rico, the term ``applicable laws'' 
refers to 3 L.P.R.A. 1451q and 3 L.P.R.A. 1451r, as amended.
    (i) Voluntary Agreement Certification.--
        (1) In general.--The Oversight Board shall issue a 
    certification to a covered territory or covered territorial 
    instrumentality if the Oversight Board determines, in its sole 
    discretion, that such covered territory or covered territorial 
    instrumentality, as applicable, has successfully reached a 
    voluntary agreement with holders of its Bond Claims to restructure 
    such Bond Claims--
            (A) except as provided in subparagraph (C), if an 
        applicable Fiscal Plan has been certified, in a manner that 
        provides for a sustainable level of debt for such covered 
        territory or covered territorial instrumentality, as 
        applicable, and is in conformance with the applicable certified 
        Fiscal Plan;
            (B) except as provided in subparagraph (C), if an 
        applicable Fiscal Plan has not yet been certified, in a manner 
        that provides, in the Oversight Board's sole discretion, for a 
        sustainable level of debt for such covered territory or covered 
        territorial instrumentality; or
            (C) notwithstanding subparagraphs (A) and (B), if an 
        applicable Fiscal Plan has not yet been certified and the 
        voluntary agreement is limited solely to an extension of 
        applicable principal maturities and interest on Bonds issued by 
        such covered territory or covered territorial instrumentality, 
        as applicable, for a period of up to one year during which time 
        no interest will be paid on the Bond Claims affected by the 
        voluntary agreement.
        (2) Effectiveness.--The effectiveness of any voluntary 
    agreement referred to in paragraph (1) shall be conditioned on--
            (A) the Oversight Board delivering the certification 
        described in paragraph (1); and
            (B) the agreement of a majority in amount of the Bond 
        Claims of a covered territory or a covered territorial 
        instrumentality that are to be affected by such agreement, 
        provided, however, that such agreement is solely for purposes 
        of serving as a Qualifying Modification pursuant to subsection 
        601(g) of this Act and shall not alter existing legal rights of 
        holders of Bond Claims against such covered territory or 
        covered territorial instrumentality that have not assented to 
        such agreement until an order approving the Qualifying 
        Modification has been entered pursuant to section 601(m)(1)(D) 
        of this Act.
        (3) Preexisting voluntary agreements.--Any voluntary agreement 
    that the territorial government or any territorial instrumentality 
    has executed before May 18, 2016, with holders of a majority in 
    amount of Bond Claims that are to be affected by such agreement to 
    restructure such Bond Claims shall be deemed to be in conformance 
    with the requirements of this subsection.
    (j) Restructuring Filings.--
        (1) In general.--Subject to paragraph (3), before taking an 
    action described in paragraph (2) on behalf of a debtor or 
    potential debtor in a case under title III, the Oversight Board 
    must certify the action.
        (2) Actions described.--The actions referred to in paragraph 
    (1) are--
            (A) the filing of a petition; or
            (B) the submission or modification of a plan of adjustment.
        (3) Condition for plans of adjustment.--The Oversight Board may 
    certify a plan of adjustment only if it determines, in its sole 
    discretion, that it is consistent with the applicable certified 
    Fiscal Plan.
    (k) Civil Actions To Enforce Powers.--The Oversight Board may seek 
judicial enforcement of its authority to carry out its responsibilities 
under this Act.
    (l) Penalties.--
        (1) Acts prohibited.--Any officer or employee of the 
    territorial government who prepares, presents, or certifies any 
    information or report for the Oversight Board or any of its agents 
    that is intentionally false or misleading, or, upon learning that 
    any such information is false or misleading, fails to immediately 
    advise the Oversight Board or its agents thereof in writing, shall 
    be subject to prosecution and penalties under any laws of the 
    territory prohibiting the provision of false information to 
    government officials, which in the case of Puerto Rico shall 
    include 33 L.P.R.A. 4889, as amended.
        (2) Administrative discipline.--In addition to any other 
    applicable penalty, any officer or employee of the territorial 
    government who knowingly and willfully violates paragraph (1) or 
    takes any such action in violation of any valid order of the 
    Oversight Board or fails or refuses to take any action required by 
    any such order, shall be subject to appropriate administrative 
    discipline, including (when appropriate) suspension from duty 
    without pay or removal from office, by order of the Governor.
        (3) Report by governor on disciplinary actions taken.--In the 
    case of a violation of paragraph (2) by an officer or employee of 
    the territorial government, the Governor shall immediately report 
    to the Oversight Board all pertinent facts together with a 
    statement of the action taken thereon.
    (m) Electronic Reporting.--The Oversight Board may, in consultation 
with the Governor, ensure the prompt and efficient payment and 
administration of taxes through the adoption of electronic reporting, 
payment and auditing technologies.
    (n) Administrative Support Services.--Upon the request of the 
Oversight Board, the Administrator of General Services or other 
appropriate Federal agencies shall promptly provide to the Oversight 
Board, on a reimbursable or non-reimbursable basis, the administrative 
support services necessary for the Oversight Board to carry out its 
responsibilities under this Act.
    (o) Investigation of Disclosure and Selling Practices.--The 
Oversight Board may investigate the disclosure and selling practices in 
connection with the purchase of bonds issued by a covered territory for 
or on behalf of any retail investors including any underrepresentation 
of risk for such investors and any relationships or conflicts of 
interest maintained by such broker, dealer, or investment adviser is as 
provided in applicable laws and regulations.
    (p) Findings of Any Investigation.--The Oversight Board shall make 
public the findings of any investigation referenced in subsection (o).
    SEC. 105. EXEMPTION FROM LIABILITY FOR CLAIMS.
    The Oversight Board, its members, and its employees shall not be 
liable for any obligation of or claim against the Oversight Board or 
its members or employees or the territorial government resulting from 
actions taken to carry out this Act.
    SEC. 106. TREATMENT OF ACTIONS ARISING FROM ACT.
    (a) Jurisdiction.--Except as provided in section 104(f)(2) 
(relating to the issuance of an order enforcing a subpoena), and title 
III (relating to adjustments of debts), any action against the 
Oversight Board, and any action otherwise arising out of this Act, in 
whole or in part, shall be brought in a United States district court 
for the covered territory or, for any covered territory that does not 
have a district court, in the United States District Court for the 
District of Hawaii.
    (b) Appeal.--Notwithstanding any other provision of law, any order 
of a United States district court that is issued pursuant to an action 
brought under subsection (a) shall be subject to review only pursuant 
to a notice of appeal to the applicable United States Court of Appeals.
    (c) Timing of Relief.--Except with respect to any orders entered to 
remedy constitutional violations, no order of any court granting 
declaratory or injunctive relief against the Oversight Board, including 
relief permitting or requiring the obligation, borrowing, or 
expenditure of funds, shall take effect during the pendency of the 
action before such court, during the time appeal may be taken, or (if 
appeal is taken) during the period before the court has entered its 
final order disposing of such action.
    (d) Expedited Consideration.--It shall be the duty of the 
applicable United States District Court, the applicable United States 
Court of Appeals, and, as applicable, the Supreme Court of the United 
States to advance on the docket and to expedite to the greatest 
possible extent the disposition of any matter brought under this Act.
    (e) Review of Oversight Board Certifications.--There shall be no 
jurisdiction in any United States district court to review challenges 
to the Oversight Board's certification determinations under this Act.
    SEC. 107. BUDGET AND FUNDING FOR OPERATION OF OVERSIGHT BOARD.
    (a) Submission of Budget.--The Oversight Board shall submit a 
budget for each fiscal year during which the Oversight Board is in 
operation, to the President, the House of Representatives Committee on 
Natural Resources and the Senate Committee on Energy and Natural 
Resources, the Governor, and the Legislature.
    (b) Funding.--The Oversight Board shall use its powers with respect 
to the Territory Budget of the covered territory to ensure that 
sufficient funds are available to cover all expenses of the Oversight 
Board.
        (1) Permanent funding.--Within 30 days after the date of 
    enactment of this Act, the territorial government shall designate a 
    dedicated funding source, not subject to subsequent legislative 
    appropriations, sufficient to support the annual expenses of the 
    Oversight Board as determined in the Oversight Board's sole and 
    exclusive discretion.
        (2)(A) Initial funding.--On the date of establishment of an 
    Oversight Board in accordance with section 101(b) and on the 5th 
    day of each month thereafter, the Governor of the covered territory 
    shall transfer or cause to be transferred the greater of $2,000,000 
    or such amount as shall be determined by the Oversight Board 
    pursuant to subsection (a) to a new account established by the 
    territorial government, which shall be available to and subject to 
    the exclusive control of the Oversight Board, without any 
    legislative appropriations of the territorial government.
        (B) Termination.--The initial funding requirements under 
    subparagraph (A) shall terminate upon the territorial government 
    designating a dedicated funding source not subject to subsequent 
    legislative appropriations under paragraph (1).
        (3) Remission of excess funds.--If the Oversight Board 
    determines in its sole discretion that any funds transferred under 
    this subsection exceed the amounts required for the Oversight 
    Board's operations as established pursuant to subsection (a), any 
    such excess funds shall be periodically remitted to the territorial 
    government.
    SEC. 108. AUTONOMY OF OVERSIGHT BOARD.
    (a) In General.--Neither the Governor nor the Legislature may--
        (1) exercise any control, supervision, oversight, or review 
    over the Oversight Board or its activities; or
        (2) enact, implement, or enforce any statute, resolution, 
    policy, or rule that would impair or defeat the purposes of this 
    Act, as determined by the Oversight Board.
    (b) Oversight Board Legal Representation.--In any action brought 
by, on behalf of, or against the Oversight Board, the Oversight Board 
shall be represented by such counsel as it may hire or retain so long 
as the representation complies with the applicable professional rules 
of conduct governing conflicts of interests.
    SEC. 109. ETHICS.
    (a) Conflict of Interest.--Notwithstanding any ethics provision 
governing employees of the covered territory, all members and staff of 
the Oversight Board shall be subject to the Federal conflict of 
interest requirements described in section 208 of title 18, United 
States Code.
    (b) Financial Disclosure.--Notwithstanding any ethics provision 
governing employees of the covered territory, all members of the 
Oversight Board and staff designated by the Oversight Board shall be 
subject to disclosure of their financial interests, the contents of 
which shall conform to the same requirements set forth in section 102 
of the Ethics in Government Act of 1978 (5 U.S.C. App.).

             TITLE II--RESPONSIBILITIES OF OVERSIGHT BOARD

    SEC. 201. APPROVAL OF FISCAL PLANS.
    (a) In General.--As soon as practicable after all of the members 
and the Chair have been appointed to the Oversight Board in accordance 
with section 101(e) in the fiscal year in which the Oversight Board is 
established, and in each fiscal year thereafter during which the 
Oversight Board is in operation, the Oversight Board shall deliver a 
notice to the Governor providing a schedule for the process of 
development, submission, approval, and certification of Fiscal Plans. 
The notice may also set forth a schedule for revisions to any Fiscal 
Plan that has already been certified, which revisions must be subject 
to subsequent approval and certification by the Oversight Board. The 
Oversight Board shall consult with the Governor in establishing a 
schedule, but the Oversight Board shall retain sole discretion to set 
or, by delivery of a subsequent notice to the Governor, change the 
dates of such schedule as it deems appropriate and reasonably feasible.
    (b) Requirements.--
        (1) In general.--A Fiscal Plan developed under this section 
    shall, with respect to the territorial government or covered 
    territorial instrumentality, provide a method to achieve fiscal 
    responsibility and access to the capital markets, and--
            (A) provide for estimates of revenues and expenditures in 
        conformance with agreed accounting standards and be based on--
                (i) applicable laws; or
                (ii) specific bills that require enactment in order to 
            reasonably achieve the projections of the Fiscal Plan;
            (B) ensure the funding of essential public services;
            (C) provide adequate funding for public pension systems;
            (D) provide for the elimination of structural deficits;
            (E) for fiscal years covered by a Fiscal Plan in which a 
        stay under titles III or IV is not effective, provide for a 
        debt burden that is sustainable;
            (F) improve fiscal governance, accountability, and internal 
        controls;
            (G) enable the achievement of fiscal targets;
            (H) create independent forecasts of revenue for the period 
        covered by the Fiscal Plan;
            (I) include a debt sustainability analysis;
            (J) provide for capital expenditures and investments 
        necessary to promote economic growth;
            (K) adopt appropriate recommendations submitted by the 
        Oversight Board under section 205(a);
            (L) include such additional information as the Oversight 
        Board deems necessary;
            (M) ensure that assets, funds, or resources of a 
        territorial instrumentality are not loaned to, transferred to, 
        or otherwise used for the benefit of a covered territory or 
        another covered territorial instrumentality of a covered 
        territory, unless permitted by the constitution of the 
        territory, an approved plan of adjustment under title III, or a 
        Qualifying Modification approved under title VI; and
            (N) respect the relative lawful priorities or lawful liens, 
        as may be applicable, in the constitution, other laws, or 
        agreements of a covered territory or covered territorial 
        instrumentality in effect prior to the date of enactment of 
        this Act.
        (2) Term.--A Fiscal Plan developed under this section shall 
    cover a period of fiscal years as determined by the Oversight Board 
    in its sole discretion but in any case a period of not less than 5 
    fiscal years from the fiscal year in which it is certified by the 
    Oversight Board.
    (c) Development, Review, Approval, and Certification of Fiscal 
Plans.--
        (1) Timing requirement.--The Governor may not submit to the 
    Legislature a Territory Budget under section 202 for a fiscal year 
    unless the Oversight Board has certified the Territory Fiscal Plan 
    for that fiscal year in accordance with this subsection, unless the 
    Oversight Board in its sole discretion waives this requirement.
        (2) Fiscal plan developed by governor.--The Governor shall 
    submit to the Oversight Board any proposed Fiscal Plan required by 
    the Oversight Board by the time specified in the notice delivered 
    under subsection (a).
        (3) Review by the oversight board.--The Oversight Board shall 
    review any proposed Fiscal Plan to determine whether it satisfies 
    the requirements set forth in subsection (b) and, if the Oversight 
    Board determines in its sole discretion that the proposed Fiscal 
    Plan--
            (A) satisfies such requirements, the Oversight Board shall 
        approve the proposed Fiscal Plan; or
            (B) does not satisfy such requirements, the Oversight Board 
        shall provide to the Governor--
                (i) a notice of violation that includes recommendations 
            for revisions to the applicable Fiscal Plan; and
                (ii) an opportunity to correct the violation in 
            accordance with subsection (d)(1).
    (d) Revised Fiscal Plan.--
        (1) In general.--If the Governor receives a notice of violation 
    under subsection (c)(3), the Governor shall submit to the Oversight 
    Board a revised proposed Fiscal Plan in accordance with subsection 
    (b) by the time specified in the notice delivered under subsection 
    (a). The Governor may submit as many revised Fiscal Plans to the 
    Oversight Board as the schedule established in the notice delivered 
    under subsection (a) permits.
        (2) Development by oversight board.--If the Governor fails to 
    submit to the Oversight Board a Fiscal Plan that the Oversight 
    Board determines in its sole discretion satisfies the requirements 
    set forth in subsection (b) by the time specified in the notice 
    delivered under subsection (a), the Oversight Board shall develop 
    and submit to the Governor and the Legislature a Fiscal Plan that 
    satisfies the requirements set forth in subsection (b).
    (e) Approval and Certification.--
        (1) Approval of fiscal plan developed by governor.--If the 
    Oversight Board approves a Fiscal Plan under subsection (c)(3), it 
    shall deliver a compliance certification for such Fiscal Plan to 
    the Governor and the Legislature.
        (2) Deemed approval of fiscal plan developed by oversight 
    board.--If the Oversight Board develops a Fiscal Plan under 
    subsection (d)(2), such Fiscal Plan shall be deemed approved by the 
    Governor, and the Oversight Board shall issue a compliance 
    certification for such Fiscal Plan to the Governor and the 
    Legislature.
    (f) Joint Development of Fiscal Plan.--Notwithstanding any other 
provision of this section, if the Governor and the Oversight Board 
jointly develop a Fiscal Plan for the fiscal year that meets the 
requirements under this section, and that the Governor and the 
Oversight Board certify that the fiscal plan reflects a consensus 
between the Governor and the Oversight Board, then such Fiscal Plan 
shall serve as the Fiscal Plan for the territory or territorial 
instrumentality for that fiscal year.
    SEC. 202. APPROVAL OF BUDGETS.
    (a) Reasonable Schedule for Development of Budgets.--As soon as 
practicable after all of the members and the Chair have been appointed 
to the Oversight Board in the fiscal year in which the Oversight Board 
is established, and in each fiscal year thereafter during which the 
Oversight Board is in operation, the Oversight Board shall deliver a 
notice to the Governor and the Legislature providing a schedule for 
developing, submitting, approving, and certifying Budgets for a period 
of fiscal years as determined by the Oversight Board in its sole 
discretion but in any case a period of not less than one fiscal year 
following the fiscal year in which the notice is delivered. The notice 
may also set forth a schedule for revisions to Budgets that have 
already been certified, which revisions must be subject to subsequent 
approval and certification by the Oversight Board. The Oversight Board 
shall consult with the Governor and the Legislature in establishing a 
schedule, but the Oversight Board shall retain sole discretion to set 
or, by delivery of a subsequent notice to the Governor and the 
Legislature, change the dates of such schedule as it deems appropriate 
and reasonably feasible.
    (b) Revenue Forecast.--The Oversight Board shall submit to the 
Governor and Legislature a forecast of revenues for the period covered 
by the Budgets by the time specified in the notice delivered under 
subsection (a), for use by the Governor in developing the Budget under 
subsection (c).
    (c) Budgets Developed by Governor.--
        (1) Governor's proposed budgets.--The Governor shall submit to 
    the Oversight Board proposed Budgets by the time specified in the 
    notice delivered under subsection (a). In consultation with the 
    Governor in accordance with the process specified in the notice 
    delivered under subsection (a), the Oversight Board shall determine 
    in its sole discretion whether each proposed Budget is compliant 
    with the applicable Fiscal Plan and--
            (A) if a proposed Budget is a compliant budget, the 
        Oversight Board shall--
                (i) approve the Budget; and
                (ii) if the Budget is a Territory Budget, submit the 
            Territory Budget to the Legislature; or
            (B) if the Oversight Board determines that the Budget is 
        not a compliant budget, the Oversight Board shall provide to 
        the Governor--
                (i) a notice of violation that includes a description 
            of any necessary corrective action; and
                (ii) an opportunity to correct the violation in 
            accordance with paragraph (2).
        (2) Governor's revisions.--The Governor may correct any 
    violations identified by the Oversight Board and submit a revised 
    proposed Budget to the Oversight Board in accordance with paragraph 
    (1). The Governor may submit as many revised Budgets to the 
    Oversight Board as the schedule established in the notice delivered 
    under subsection (a) permits. If the Governor fails to develop a 
    Budget that the Oversight Board determines is a compliant budget by 
    the time specified in the notice delivered under subsection (a), 
    the Oversight Board shall develop and submit to the Governor, in 
    the case of an Instrumentality Budget, and to the Governor and the 
    Legislature, in the case of a Territory Budget, a revised compliant 
    budget.
    (d) Budget Approval by Legislature.--
        (1) Legislature adopted budget.--The Legislature shall submit 
    to the Oversight Board the Territory Budget adopted by the 
    Legislature by the time specified in the notice delivered under 
    subsection (a). The Oversight Board shall determine whether the 
    adopted Territory Budget is a compliant budget and--
            (A) if the adopted Territory Budget is a compliant budget, 
        the Oversight Board shall issue a compliance certification for 
        such compliant budget pursuant to subsection (e); and
            (B) if the adopted Territory Budget is not a compliant 
        budget, the Oversight Board shall provide to the Legislature--
                (i) a notice of violation that includes a description 
            of any necessary corrective action; and
                (ii) an opportunity to correct the violation in 
            accordance with paragraph (2).
        (2) Legislature's revisions.--The Legislature may correct any 
    violations identified by the Oversight Board and submit a revised 
    Territory Budget to the Oversight Board in accordance with the 
    process established under paragraph (1) and by the time specified 
    in the notice delivered under subsection (a). The Legislature may 
    submit as many revised adopted Territory Budgets to the Oversight 
    Board as the schedule established in the notice delivered under 
    subsection (a) permits. If the Legislature fails to adopt a 
    Territory Budget that the Oversight Board determines is a compliant 
    budget by the time specified in the notice delivered under 
    subsection (a), the Oversight Board shall develop a revised 
    Territory Budget that is a compliant budget and submit it to the 
    Governor and the Legislature.
    (e) Certification of Budgets.--
        (1) Certification of developed and approved territory 
    budgets.--If the Governor and the Legislature develop and approve a 
    Territory Budget that is a compliant budget by the day before the 
    first day of the fiscal year for which the Territory Budget is 
    being developed and in accordance with the process established 
    under subsections (c) and (d), the Oversight Board shall issue a 
    compliance certification to the Governor and the Legislature for 
    such Territory Budget.
        (2) Certification of developed instrumentality budgets.--If the 
    Governor develops an Instrumentality Budget that is a compliant 
    budget by the day before the first day of the fiscal year for which 
    the Instrumentality Budget is being developed and in accordance 
    with the process established under subsection (c), the Oversight 
    Board shall issue a compliance certification to the Governor for 
    such Instrumentality Budget.
        (3) Deemed certification of territory budgets.--If the Governor 
    and the Legislature fail to develop and approve a Territory Budget 
    that is a compliant budget by the day before the first day of the 
    fiscal year for which the Territory Budget is being developed, the 
    Oversight Board shall submit a Budget to the Governor and the 
    Legislature (including any revision to the Territory Budget made by 
    the Oversight Board pursuant to subsection (d)(2)) and such Budget 
    shall be--
            (A) deemed to be approved by the Governor and the 
        Legislature;
            (B) the subject of a compliance certification issued by the 
        Oversight Board to the Governor and the Legislature; and
            (C) in full force and effect beginning on the first day of 
        the applicable fiscal year.
        (4) Deemed certification of instrumentality budgets.--If the 
    Governor fails to develop an Instrumentality Budget that is a 
    compliant budget by the day before the first day of the fiscal year 
    for which the Instrumentality Budget is being developed, the 
    Oversight Board shall submit an Instrumentality Budget to the 
    Governor (including any revision to the Instrumentality Budget made 
    by the Oversight Board pursuant to subsection (c)(2)) and such 
    Budget shall be--
            (A) deemed to be approved by the Governor;
            (B) the subject of a compliance certification issued by the 
        Oversight Board to the Governor; and
            (C) in full force and effect beginning on the first day of 
        the applicable fiscal year.
    (f) Joint Development of Budgets.--Notwithstanding any other 
provision of this section, if, in the case of a Territory Budget, the 
Governor, the Legislature, and the Oversight Board, or in the case of 
an Instrumentality Budget, the Governor and the Oversight Board, 
jointly develop such Budget for the fiscal year that meets the 
requirements under this section, and that the relevant parties certify 
that such budget reflects a consensus among them, then such Budget 
shall serve as the Budget for the territory or territorial 
instrumentality for that fiscal year.
    SEC. 203. EFFECT OF FINDING OF NONCOMPLIANCE WITH BUDGET.
    (a) Submission of Reports.--Not later than 15 days after the last 
day of each quarter of a fiscal year (beginning with the fiscal year 
determined by the Oversight Board), the Governor shall submit to the 
Oversight Board a report, in such form as the Oversight Board may 
require, describing--
        (1) the actual cash revenues, cash expenditures, and cash flows 
    of the territorial government for the preceding quarter, as 
    compared to the projected revenues, expenditures, and cash flows 
    contained in the certified Budget for such preceding quarter; and
        (2) any other information requested by the Oversight Board, 
    which may include a balance sheet or a requirement that the 
    Governor provide information for each covered territorial 
    instrumentality separately.
    (b) Initial Action by Oversight Board.--
        (1) In general.--If the Oversight Board determines, based on 
    reports submitted by the Governor under subsection (a), independent 
    audits, or such other information as the Oversight Board may 
    obtain, that the actual quarterly revenues, expenditures, or cash 
    flows of the territorial government are not consistent with the 
    projected revenues, expenditures, or cash flows set forth in the 
    certified Budget for such quarter, the Oversight Board shall--
            (A) require the territorial government to provide such 
        additional information as the Oversight Board determines to be 
        necessary to explain the inconsistency; and
            (B) if the additional information provided under 
        subparagraph (A) does not provide an explanation for the 
        inconsistency that the Oversight Board finds reasonable and 
        appropriate, advise the territorial government to correct the 
        inconsistency by implementing remedial action.
        (2) Deadlines.--The Oversight Board shall establish the 
    deadlines by which the territorial government shall meet the 
    requirements of subparagraphs (A) and (B) of paragraph (1).
    (c) Certification.--
        (1) Inconsistency.--If the territorial government fails to 
    provide additional information under subsection (b)(1)(A), or fails 
    to correct an inconsistency under subsection (b)(1)(B), prior to 
    the applicable deadline under subsection (b)(2), the Oversight 
    Board shall certify to the President, the House of Representatives 
    Committee on Natural Resources, the Senate Committee on Energy and 
    Natural Resources, the Governor, and the Legislature that the 
    territorial government is inconsistent with the applicable 
    certified Budget, and shall describe the nature and amount of the 
    inconsistency.
        (2) Correction.--If the Oversight Board determines that the 
    territorial government has initiated such measures as the Oversight 
    Board considers sufficient to correct an inconsistency certified 
    under paragraph (1), the Oversight Board shall certify the 
    correction to the President, the House of Representatives Committee 
    on Natural Resources, the Senate Committee on Energy and Natural 
    Resources, the Governor, and the Legislature.
    (d) Budget Reductions by Oversight Board.--If the Oversight Board 
determines that the Governor, in the case of any then-applicable 
certified Instrumentality Budgets, and the Governor and the 
Legislature, in the case of the then-applicable certified Territory 
Budget, have failed to correct an inconsistency identified by the 
Oversight Board under subsection (c), the Oversight Board shall--
        (1) with respect to the territorial government, other than 
    covered territorial instrumentalities, make appropriate reductions 
    in nondebt expenditures to ensure that the actual quarterly 
    revenues and expenditures for the territorial government are in 
    compliance with the applicable certified Territory Budget or, in 
    the case of the fiscal year in which the Oversight Board is 
    established, the budget adopted by the Governor and the 
    Legislature; and
        (2) with respect to covered territorial instrumentalities at 
    the sole discretion of the Oversight Board--
            (A) make reductions in nondebt expenditures to ensure that 
        the actual quarterly revenues and expenses for the covered 
        territorial instrumentality are in compliance with the 
        applicable certified Budget or, in the case of the fiscal year 
        in which the Oversight Board is established, the budget adopted 
        by the Governor and the Legislature or the covered territorial 
        instrumentality, as applicable; or
            (B)(i) institute automatic hiring freezes at the covered 
        territorial instrumentality; and
            (ii) prohibit the covered territorial instrumentality from 
        entering into any contract or engaging in any financial or 
        other transactions, unless the contract or transaction was 
        previously approved by the Oversight Board.
    (e) Termination of Budget Reductions.--The Oversight Board shall 
cancel the reductions, hiring freezes, or prohibition on contracts and 
financial transactions under subsection (d) if the Oversight Board 
determines that the territorial government or covered territorial 
instrumentality, as applicable, has initiated appropriate measures to 
reduce expenditures or increase revenues to ensure that the territorial 
government or covered territorial instrumentality is in compliance with 
the applicable certified Budget or, in the case of the fiscal year in 
which the Oversight Board is established, the budget adopted by the 
Governor and the Legislature.
    SEC. 204. REVIEW OF ACTIVITIES TO ENSURE COMPLIANCE WITH FISCAL 
      PLAN.
    (a) Submission of Legislative Acts to Oversight Board.--
        (1) Submission of acts.--Except to the extent that the 
    Oversight Board may provide otherwise in its bylaws, rules, and 
    procedures, not later than 7 business days after a territorial 
    government duly enacts any law during any fiscal year in which the 
    Oversight Board is in operation, the Governor shall submit the law 
    to the Oversight Board.
        (2) Cost estimate; certification of compliance or 
    noncompliance.--The Governor shall include with each law submitted 
    to the Oversight Board under paragraph (1) the following:
            (A) A formal estimate prepared by an appropriate entity of 
        the territorial government with expertise in budgets and 
        financial management of the impact, if any, that the law will 
        have on expenditures and revenues.
            (B) If the appropriate entity described in subparagraph (A) 
        finds that the law is not significantly inconsistent with the 
        Fiscal Plan for the fiscal year, it shall issue a certification 
        of such finding.
            (C) If the appropriate entity described in subparagraph (A) 
        finds that the law is significantly inconsistent with the 
        Fiscal Plan for the fiscal year, it shall issue a certification 
        of such finding, together with the entity's reasons for such 
        finding.
        (3) Notification.--The Oversight Board shall send a 
    notification to the Governor and the Legislature if--
            (A) the Governor submits a law to the Oversight Board under 
        this subsection that is not accompanied by the estimate 
        required under paragraph (2)(A);
            (B) the Governor submits a law to the Oversight Board under 
        this subsection that is not accompanied by either a 
        certification described in paragraph (2)(B) or (2)(C); or
            (C) the Governor submits a law to the Oversight Board under 
        this subsection that is accompanied by a certification 
        described in paragraph (2)(C) that the law is significantly 
        inconsistent with the Fiscal Plan.
        (4) Opportunity to respond to notification.--
            (A) Failure to provide estimate or certification.--After 
        sending a notification to the Governor and the Legislature 
        under paragraph (3)(A) or (3)(B) with respect to a law, the 
        Oversight Board may direct the Governor to provide the missing 
        estimate or certification (as the case may be), in accordance 
        with such procedures as the Oversight Board may establish.
            (B) Submission of certification of significant 
        inconsistency with fiscal plan and budget.--In accordance with 
        such procedures as the Oversight Board may establish, after 
        sending a notification to the Governor and Legislature under 
        paragraph (3)(C) that a law is significantly inconsistent with 
        the Fiscal Plan, the Oversight Board shall direct the 
        territorial government to--
                (i) correct the law to eliminate the inconsistency; or
                (ii) provide an explanation for the inconsistency that 
            the Oversight Board finds reasonable and appropriate.
        (5) Failure to comply.--If the territorial government fails to 
    comply with a direction given by the Oversight Board under 
    paragraph (4) with respect to a law, the Oversight Board may take 
    such actions as it considers necessary, consistent with this Act, 
    to ensure that the enactment or enforcement of the law will not 
    adversely affect the territorial government's compliance with the 
    Fiscal Plan, including preventing the enforcement or application of 
    the law.
        (6) Preliminary review of proposed acts.--At the request of the 
    Legislature, the Oversight Board may conduct a preliminary review 
    of proposed legislation before the Legislature to determine whether 
    the legislation as proposed would be consistent with the applicable 
    Fiscal Plan under this subtitle, except that any such preliminary 
    review shall not be binding on the Oversight Board in reviewing any 
    law subsequently submitted under this subsection.
    (b) Effect of Approved Fiscal Plan on Contracts, Rules, and 
Regulations.--
        (1) Transparency in contracting.--The Oversight Board shall 
    work with a covered territory's office of the comptroller or any 
    functionally equivalent entity to promote compliance with the 
    applicable law of any covered territory that requires agencies and 
    instrumentalities of the territorial government to maintain a 
    registry of all contracts executed, including amendments thereto, 
    and to remit a copy to the office of the comptroller for inclusion 
    in a comprehensive database available to the public. With respect 
    to Puerto Rico, the term ``applicable law'' refers to 2 L.P.R.A. 
    97, as amended.
        (2) Authority to review certain contracts.--The Oversight Board 
    may establish policies to require prior Oversight Board approval of 
    certain contracts, including leases and contracts to a governmental 
    entity or government-owned corporations rather than private 
    enterprises that are proposed to be executed by the territorial 
    government, to ensure such proposed contracts promote market 
    competition and are not inconsistent with the approved Fiscal Plan.
        (3) Sense of congress.--It is the sense of Congress that any 
    policies established by the Oversight Board pursuant to paragraph 
    (2) should be designed to make the government contracting process 
    more effective, to increase the public's faith in this process, to 
    make appropriate use of the Oversight Board's time and resources, 
    to make the territorial government a facilitator and not a 
    competitor to private enterprise, and to avoid creating any 
    additional bureaucratic obstacles to efficient contracting.
        (4) Authority to review certain rules, regulations, and 
    executive orders.--The provisions of this paragraph shall apply 
    with respect to a rule, regulation, or executive order proposed to 
    be issued by the Governor (or the head of any department or agency 
    of the territorial government) in the same manner as such 
    provisions apply to a contract.
        (5) Failure to comply.--If a contract, rule, regulation, or 
    executive order fails to comply with policies established by the 
    Oversight Board under this subsection, the Oversight Board may take 
    such actions as it considers necessary to ensure that such 
    contract, rule, executive order or regulation will not adversely 
    affect the territorial government's compliance with the Fiscal 
    Plan, including by preventing the execution or enforcement of the 
    contract, rule, executive order or regulation.
    (c) Restrictions on Budgetary Adjustments.--
        (1) Submissions of requests to oversight board.--If the 
    Governor submits a request to the Legislature for the reprogramming 
    of any amounts provided in a certified Budget, the Governor shall 
    submit such request to the Oversight Board, which shall analyze 
    whether the proposed reprogramming is significantly inconsistent 
    with the Budget, and submit its analysis to the Legislature as soon 
    as practicable after receiving the request.
        (2) No action permitted until analysis received.--The 
    Legislature shall not adopt a reprogramming, and no officer or 
    employee of the territorial government may carry out any 
    reprogramming, until the Oversight Board has provided the 
    Legislature with an analysis that certifies such reprogramming will 
    not be inconsistent with the Fiscal Plan and Budget.
        (3) Prohibition on action until oversight board is appointed.--
            (A) During the period after a territory becomes a covered 
        territory and prior to the appointment of all members and the 
        Chair of the Oversight Board, such covered territory shall not 
        enact new laws that either permit the transfer of any funds or 
        assets outside the ordinary course of business or that are 
        inconsistent with the constitution or laws of the territory as 
        of the date of enactment of this Act, provided that any 
        executive or legislative action authorizing the movement of 
        funds or assets during this time period may be subject to 
        review and rescission by the Oversight Board upon appointment 
        of the Oversight Board's full membership.
        (B) Upon appointment of the Oversight Board's full membership, 
    the Oversight Board may review, and in its sole discretion, 
    rescind, any law that--
            (i) was enacted during the period between, with respect to 
        Puerto Rico, May 4, 2016; or with respect to any other 
        territory, 45 days prior to the establishment of the Oversight 
        Board for such territory, and the date of appointment of all 
        members and the Chair of the Oversight Board; and
            (ii) alters pre-existing priorities of creditors in a 
        manner outside the ordinary course of business or inconsistent 
        with the territory's constitution or the laws of the territory 
        as of, in the case of Puerto Rico, May 4, 2016, or with respect 
        to any other territory, 45 days prior to the establishment of 
        the Oversight Board for such territory;
    but such rescission shall only be to the extent that the law alters 
    such priorities.
    (d) Implementation of Federal Programs.--In taking actions under 
this Act, the Oversight Board shall not exercise applicable authorities 
to impede territorial actions taken to--
        (1) comply with a court-issued consent decree or injunction, or 
    an administrative order or settlement with a Federal agency, with 
    respect to Federal programs;
        (2) implement a federally authorized or federally delegated 
    program;
        (3) implement territorial laws, which are consistent with a 
    certified Fiscal Plan, that execute Federal requirements and 
    standards; or
        (4) preserve and maintain federally funded mass transportation 
    assets.
    SEC. 205. RECOMMENDATIONS ON FINANCIAL STABILITY AND MANAGEMENT 
      RESPONSIBILITY.
    (a) In General.--The Oversight Board may at any time submit 
recommendations to the Governor or the Legislature on actions the 
territorial government may take to ensure compliance with the Fiscal 
Plan, or to otherwise promote the financial stability, economic growth, 
management responsibility, and service delivery efficiency of the 
territorial government, including recommendations relating to--
        (1) the management of the territorial government's financial 
    affairs, including economic forecasting and multiyear fiscal 
    forecasting capabilities, information technology, placing controls 
    on expenditures for personnel, reducing benefit costs, reforming 
    procurement practices, and placing other controls on expenditures;
        (2) the structural relationship of departments, agencies, and 
    independent agencies within the territorial government;
        (3) the modification of existing revenue structures, or the 
    establishment of additional revenue structures;
        (4) the establishment of alternatives for meeting obligations 
    to pay for the pensions of territorial government employees;
        (5) modifications or transfers of the types of services that 
    are the responsibility of, and are delivered by the territorial 
    government;
        (6) modifications of the types of services that are delivered 
    by entities other than the territorial government under alternative 
    service delivery mechanisms;
        (7) the effects of the territory's laws and court orders on the 
    operations of the territorial government;
        (8) the establishment of a personnel system for employees of 
    the territorial government that is based upon employee performance 
    standards;
        (9) the improvement of personnel training and proficiency, the 
    adjustment of staffing levels, and the improvement of training and 
    performance of management and supervisory personnel; and
        (10) the privatization and commercialization of entities within 
    the territorial government.
    (b) Response to Recommendations by the Territorial Government.--
        (1) In general.--In the case of any recommendations submitted 
    under subsection (a) that are within the authority of the 
    territorial government to adopt, not later than 90 days after 
    receiving the recommendations, the Governor or the Legislature 
    (whichever has the authority to adopt the recommendation) shall 
    submit a statement to the Oversight Board that provides notice as 
    to whether the territorial government will adopt the 
    recommendations.
        (2) Implementation plan required for adopted recommendations.--
    If the Governor or the Legislature (whichever is applicable) 
    notifies the Oversight Board under paragraph (1) that the 
    territorial government will adopt any of the recommendations 
    submitted under subsection (a), the Governor or the Legislature 
    (whichever is applicable) shall include in the statement a written 
    plan to implement the recommendation that includes--
            (A) specific performance measures to determine the extent 
        to which the territorial government has adopted the 
        recommendation; and
            (B) a clear and specific timetable pursuant to which the 
        territorial government will implement the recommendation.
        (3) Explanations required for recommendations not adopted.--If 
    the Governor or the Legislature (whichever is applicable) notifies 
    the Oversight Board under paragraph (1) that the territorial 
    government will not adopt any recommendation submitted under 
    subsection (a) that the territorial government has authority to 
    adopt, the Governor or the Legislature shall include in the 
    statement explanations for the rejection of the recommendations, 
    and the Governor or the Legislature shall submit such statement of 
    explanations to the President and Congress.
    SEC. 206. OVERSIGHT BOARD DUTIES RELATED TO RESTRUCTURING.
    (a) Requirements for Restructuring Certification.--The Oversight 
Board, prior to issuing a restructuring certification regarding an 
entity (as such term is defined in section 101 of title 11, United 
States Code), shall determine, in its sole discretion, that--
        (1) the entity has made good-faith efforts to reach a 
    consensual restructuring with creditors;
        (2) the entity has--
            (A) adopted procedures necessary to deliver timely audited 
        financial statements; and
            (B) made public draft financial statements and other 
        information sufficient for any interested person to make an 
        informed decision with respect to a possible restructuring;
        (3) the entity is either a covered territory that has adopted a 
    Fiscal Plan certified by the Oversight Board, a covered territorial 
    instrumentality that is subject to a Territory Fiscal Plan 
    certified by the Oversight Board, or a covered territorial 
    instrumentality that has adopted an Instrumentality Fiscal Plan 
    certified by the Oversight Board; and
        (4)(A) no order approving a Qualifying Modification under 
    section 601 has been entered with respect to such entity; or
        (B) if an order approving a Qualifying Modification has been 
    entered with respect to such entity, the entity is unable to make 
    its debt payments notwithstanding the approved Qualifying 
    Modification, in which case, all claims affected by the Qualifying 
    Modification shall be subject to a title III case.
    (b) Issuance of Restructuring Certification.--The issuance of a 
restructuring certification under this section requires a vote of no 
fewer than 5 members of the Oversight Board in the affirmative, which 
shall satisfy the requirement set forth in section 302(2) of this Act.
    SEC. 207. OVERSIGHT BOARD AUTHORITY RELATED TO DEBT ISSUANCE.
    For so long as the Oversight Board remains in operation, no 
territorial government may, without the prior approval of the Oversight 
Board, issue debt or guarantee, exchange, modify, repurchase, redeem, 
or enter into similar transactions with respect to its debt.
    SEC. 208. REQUIRED REPORTS.
    (a) Annual Report.--Not later than 30 days after the last day of 
each fiscal year, the Oversight Board shall submit a report to the 
President, Congress, the Governor and the Legislature, describing--
        (1) the progress made by the territorial government in meeting 
    the objectives of this Act during the fiscal year;
        (2) the assistance provided by the Oversight Board to the 
    territorial government in meeting the purposes of this Act during 
    the fiscal year;
        (3) recommendations to the President and Congress on changes to 
    this Act or other Federal laws, or other actions of the Federal 
    Government, that would assist the territorial government in 
    complying with any certified Fiscal Plan;
        (4) the precise manner in which funds allocated to the 
    Oversight Board under section 107 and, as applicable, section 
    104(e) have been spent by the Oversight Board during the fiscal 
    year; and
        (5) any other activities of the Oversight Board during the 
    fiscal year.
    (b) Report on Discretionary Tax Abatement Agreements.--Within six 
months of the establishment of the Oversight Board, the Governor shall 
submit a report to the Oversight Board documenting all existing 
discretionary tax abatement or similar tax relief agreements to which 
the territorial government, or any territorial instrumentality, is a 
party, provided that--
        (1) nothing in this Act shall be interpreted to limit the power 
    of the territorial government or any territorial instrumentality to 
    execute or modify discretionary tax abatement or similar tax relief 
    agreements, or to enforce compliance with the terms and conditions 
    of any discretionary tax abatement or similar tax relief agreement, 
    to which the territorial government or any territorial 
    instrumentality is a party; and
        (2) the members and staff of the Oversight Board shall not 
    disclose the contents of the report described in this subsection, 
    and shall otherwise comply with all applicable territorial and 
    Federal laws and regulations regarding the handling of confidential 
    taxpayer information.
    (c) Quarterly Reports of Cash Flow.--The Oversight Board, when 
feasible, shall report on the amount of cash flow available for the 
payment of debt service on all notes, bonds, debentures, credit 
agreements, or other instruments for money borrowed whose enforcement 
is subject to a stay or moratorium hereunder, together with any 
variance from the amount set forth in the debt sustainability analysis 
of the Fiscal Plan under section 201(b)(1)(I).
    SEC. 209. TERMINATION OF OVERSIGHT BOARD.
    An Oversight Board shall terminate upon certification by the 
Oversight Board that--
        (1) the applicable territorial government has adequate access 
    to short-term and long-term credit markets at reasonable interest 
    rates to meet the borrowing needs of the territorial government; 
    and
        (2) for at least 4 consecutive fiscal years--
            (A) the territorial government has developed its Budgets in 
        accordance with modified accrual accounting standards; and
            (B) the expenditures made by the territorial government 
        during each fiscal year did not exceed the revenues of the 
        territorial government during that year, as determined in 
        accordance with modified accrual accounting standards.
    SEC. 210. NO FULL FAITH AND CREDIT OF THE UNITED STATES.
    (a) In General.--The full faith and credit of the United States is 
not pledged for the payment of any principal of or interest on any 
bond, note, or other obligation issued by a covered territory or 
covered territorial instrumentality. The United States is not 
responsible or liable for the payment of any principal of or interest 
on any bond, note, or other obligation issued by a covered territory or 
covered territorial instrumentality.
    (b) Subject to Appropriations.--Any claim to which the United 
States is determined to be liable under this Act shall be subject to 
appropriations.
    (c) Funding.--No Federal funds shall be authorized by this Act for 
the payment of any liability of the territory or territorial 
instrumentality.
    SEC. 211. ANALYSIS OF PENSIONS.
    (a) Determination.--If the Oversight Board determines, in its sole 
discretion, that a pension system of the territorial government is 
materially underfunded, the Oversight Board shall conduct an analysis 
prepared by an independent actuary of such pension system to assist the 
Oversight Board in evaluating the fiscal and economic impact of the 
pension cash flows.
    (b) Provisions of Analysis.--An analysis conducted under subsection 
(a) shall include--
        (1) an actuarial study of the pension liabilities and funding 
    strategy that includes a forward looking projection of payments of 
    at least 30 years of benefit payments and funding strategy to cover 
    such payments;
        (2) sources of funding to cover such payments;
        (3) a review of the existing benefits and their sustainability; 
    and
        (4) a review of the system's legal structure and operational 
    arrangements, and any other studies of the pension system the 
    Oversight Board shall deem necessary.
    (c) Supplementary Information.--In any case, the analysis conducted 
under subsection (a) shall include information regarding the fair 
market value and liabilities using an appropriate discount rate as 
determined by the Oversight Board.
    SEC. 212. INTERVENTION IN LITIGATION.
    (a) Intervention.--The Oversight Board may intervene in any 
litigation filed against the territorial government.
    (b) Injunctive Relief.--
        (1) In general.--If the Oversight Board intervenes in a 
    litigation under subsection (a), the Oversight Board may seek 
    injunctive relief, including a stay of litigation.
        (2) No independent basis for relief.--This section does not 
    create an independent basis on which injunctive relief, including a 
    stay of litigation, may be granted.

                    TITLE III--ADJUSTMENTS OF DEBTS

    SEC. 301. APPLICABILITY OF OTHER LAWS; DEFINITIONS.
    (a) Sections Applicable to Cases Under This Title.--Sections 101 
(except as otherwise provided in this section), 102, 104, 105, 106, 
107, 108, 112, 333, 344, 347(b), 349, 350(b), 351, 361, 362, 364(c), 
364(d), 364(e), 364(f), 365, 366, 501, 502, 503, 504, 506, 507(a)(2), 
509, 510, 524(a)(1), 524(a)(2), 544, 545, 546, 547, 548, 549(a), 
549(c), 549(d), 550, 551, 552, 553, 555, 556, 557, 559, 560, 561, 562, 
902 (except as otherwise provided in this section), 922, 923, 924, 925, 
926, 927, 928, 942, 944, 945, 946, 1102, 1103, 1109, 1111(b), 1122, 
1123(a)(1), 1123(a)(2), 1123(a)(3), 1123(a)(4), 1123(a)(5), 1123(b), 
1123(d), 1124, 1125, 1126(a), 1126(b), 1126(c), 1126(e), 1126(f), 
1126(g), 1127(d), 1128, 1129(a)(2), 1129(a)(3), 1129(a)(6), 1129(a)(8), 
1129(a)(10), 1129(b)(1), 1129(b)(2)(A), 1129(b)(2)(B), 1142(b), 1143, 
1144, 1145, and 1146(a) of title 11, United States Code, apply in a 
case under this title and section 930 of title 11, United States Code, 
applies in a case under this title; however, section 930 shall not 
apply in any case during the first 120 days after the date on which 
such case is commenced under this title.
    (b) Meanings of Terms.--A term used in a section of title 11, 
United States Code, made applicable in a case under this title by 
subsection (a), has the meaning given to the term for the purpose of 
the applicable section, unless the term is otherwise defined in this 
title.
    (c) Definitions.--In this title:
        (1) Affiliate.--The term ``affiliate'' means, in addition to 
    the definition made applicable in a case under this title by 
    subsection (a)--
            (A) for a territory, any territorial instrumentality; and
            (B) for a territorial instrumentality, the governing 
        territory and any of the other territorial instrumentalities of 
        the territory.
        (2) Debtor.--The term ``debtor'' means the territory or covered 
    territorial instrumentality concerning which a case under this 
    title has been commenced.
        (3) Holder of a claim or interest.--The term ``holder of a 
    claim or interest'', when used in section 1126 of title 11, United 
    States Code, made applicable in a case under this title by 
    subsection (a)--
            (A) shall exclude any Issuer or Authorized Instrumentality 
        of the Territory Government Issuer (as defined under Title VI 
        of this Act) or a corporation, trust or other legal entity that 
        is controlled by the Issuer or an Authorized Territorial 
        Instrumentality of the Territory Government Issuer, provided 
        that the beneficiaries of such claims, to the extent they are 
        not referenced in this subparagraph, shall not be excluded, and 
        that, for each excluded trust or other legal entity, the court 
        shall, upon the request of any participant or beneficiary of 
        such trust or entity, at any time after the commencement of the 
        case, order the appointment of a separate committee of 
        creditors pursuant to section 1102(a)(2) of title 11, United 
        States Code; and
            (B) with reference to Insured Bonds, shall mean the 
        monoline insurer insuring such Insured Bond to the extent such 
        insurer is granted the right to vote Insured Bonds for purposes 
        of directing remedies or consenting to proposed amendments or 
        modifications as provided in the applicable documents pursuant 
        to which such Insured Bond was issued and insured.
        (4) Insured bond.--The term ``Insured Bond'' means a bond 
    subject to a financial guarantee or similar insurance contract, 
    policy and/or surety issued by a monoline insurer.
        (5) Property of the estate.--The term ``property of the 
    estate'', when used in a section of title 11, United States Code, 
    made applicable in a case under this title by subsection (a), means 
    property of the debtor.
        (6) State.--The term ``State'' when used in a section of title 
    11, United States Code, made applicable in a case under this title 
    by subsection (a) means State or territory when used in reference 
    to the relationship of a State to the municipality of the State or 
    the territorial instrumentality of a territory, as applicable.
        (7) Trustee.--The term ``trustee'', when used in a section of 
    title 11, United States Code, made applicable in a case under this 
    title by subsection (a), means the Oversight Board, except as 
    provided in section 926 of title 11, United States Code. The term 
    ``trustee'' as described in this paragraph does not mean the U.S. 
    Trustee, an official of the United States Trustee Program, which is 
    a component of the United States Department of Justice.
    (d) Reference to Title.--Solely for purposes of this title, a 
reference to ``this title'', ``this chapter'', or words of similar 
import in a section of title 11, United States Code, made applicable in 
a case under this title by subsection (a) or to ``this title'', ``title 
11'', ``Chapter 9'', ``Chapter 11'', ``the Code'', or words of similar 
import in the Federal Rules of Bankruptcy Procedure made applicable in 
a case under this title shall be deemed to be a reference to this 
title.
    (e) Substantially Similar.--In determining whether claims are 
``substantially similar'' for the purpose of section 1122 of title 11, 
United States Code, made applicable in a case under this title by 
subsection (a), the Oversight Board shall consider whether such claims 
are secured and whether such claims have priority over other claims.
    (f) Operative Clauses.--A section made applicable in a case under 
this title by subsection (a) that is operative if the business of the 
debtor is authorized to be operated is operative in a case under this 
title.
    SEC. 302. WHO MAY BE A DEBTOR.
    An entity may be a debtor under this title if--
        (1) the entity is--
            (A) a territory that has requested the establishment of an 
        Oversight Board or has had an Oversight Board established for 
        it by the United States Congress in accordance with section 101 
        of this Act; or
            (B) a covered territorial instrumentality of a territory 
        described in paragraph (1)(A);
        (2) the Oversight Board has issued a certification under 
    section 206(b) of this Act for such entity; and
        (3) the entity desires to effect a plan to adjust its debts.
    SEC. 303. RESERVATION OF TERRITORIAL POWER TO CONTROL TERRITORY AND 
      TERRITORIAL INSTRUMENTALITIES.
    Subject to the limitations set forth in titles I and II of this 
Act, this title does not limit or impair the power of a covered 
territory to control, by legislation or otherwise, the territory or any 
territorial instrumentality thereof in the exercise of the political or 
governmental powers of the territory or territorial instrumentality, 
including expenditures for such exercise, but whether or not a case has 
been or can be commenced under this title--
        (1) a territory law prescribing a method of composition of 
    indebtedness or a moratorium law, but solely to the extent that it 
    prohibits the payment of principal or interest by an entity not 
    described in section 109(b)(2) of title 11, United States Code, may 
    not bind any creditor of a covered territory or any covered 
    territorial instrumentality thereof that does not consent to the 
    composition or moratorium;
        (2) a judgment entered under a law described in paragraph (1) 
    may not bind a creditor that does not consent to the composition; 
    and
        (3) unlawful executive orders that alter, amend, or modify 
    rights of holders of any debt of the territory or territorial 
    instrumentality, or that divert funds from one territorial 
    instrumentality to another or to the territory, shall be preempted 
    by this Act.
    SEC. 304. PETITION AND PROCEEDINGS RELATING TO PETITION.
    (a) Commencement of Case.--A voluntary case under this title is 
commenced by the filing with the district court of a petition by the 
Oversight Board pursuant to the determination under section 206 of this 
Act.
    (b) Objection to Petition.--After any objection to the petition, 
the court, after notice and a hearing, may dismiss the petition if the 
petition does not meet the requirements of this title; however, this 
subsection shall not apply in any case during the first 120 days after 
the date on which such case is commenced under this title.
    (c) Order for Relief.--The commencement of a case under this title 
constitutes an order for relief.
    (d) Appeal.--The court may not, on account of an appeal from an 
order for relief, delay any proceeding under this title in the case in 
which the appeal is being taken, nor shall any court order a stay of 
such proceeding pending such appeal.
    (e) Validity of Debt.--The reversal on appeal of a finding of 
jurisdiction shall not affect the validity of any debt incurred that is 
authorized by the court under section 364(c) or 364(d) of title 11, 
United States Code.
    (f) Joint Filing of Petitions and Plans Permitted.--The Oversight 
Board, on behalf of debtors under this title, may file petitions or 
submit or modify plans of adjustment jointly if the debtors are 
affiliates; provided, however, that nothing in this title shall be 
construed as authorizing substantive consolidation of the cases of 
affiliated debtors.
    (g) Joint Administration of Affiliated Cases.--If the Oversight 
Board, on behalf of a debtor and one or more affiliates, has filed 
separate cases and the Oversight Board, on behalf of the debtor or one 
of the affiliates, files a motion to administer the cases jointly, the 
court may order a joint administration of the cases.
    (h) Public Safety.--This Act may not be construed to permit the 
discharge of obligations arising under Federal police or regulatory 
laws, including laws relating to the environment, public health or 
safety, or territorial laws implementing such Federal legal provisions. 
This includes compliance obligations, requirements under consent 
decrees or judicial orders, and obligations to pay associated 
administrative, civil, or other penalties.
    (i) Voting on Debt Adjustment Plans Not Stayed.--Notwithstanding 
any provision in this title to the contrary, including sections of 
title 11, United States Code, incorporated by reference, nothing in 
this section shall prevent the holder of a claim from voting on or 
consenting to a proposed modification of such claim under title VI of 
this Act.
    SEC. 305. LIMITATION ON JURISDICTION AND POWERS OF COURT.
    Subject to the limitations set forth in titles I and II of this 
Act, notwithstanding any power of the court, unless the Oversight Board 
consents or the plan so provides, the court may not, by any stay, 
order, or decree, in the case or otherwise, interfere with--
        (1) any of the political or governmental powers of the debtor;
        (2) any of the property or revenues of the debtor; or
        (3) the use or enjoyment by the debtor of any income-producing 
    property.
    SEC. 306. JURISDICTION.
    (a) Federal Subject Matter Jurisdiction.--The district courts shall 
have--
        (1) except as provided in paragraph (2), original and exclusive 
    jurisdiction of all cases under this title; and
        (2) except as provided in subsection (b), and notwithstanding 
    any Act of Congress that confers exclusive jurisdiction on a court 
    or courts other than the district courts, original but not 
    exclusive jurisdiction of all civil proceedings arising under this 
    title, or arising in or related to cases under this title.
    (b) Property Jurisdiction.--The district court in which a case 
under this title is commenced or is pending shall have exclusive 
jurisdiction of all property, wherever located, of the debtor as of the 
commencement of the case.
    (c) Personal Jurisdiction.--The district court in which a case 
under this title is pending shall have personal jurisdiction over any 
person or entity.
    (d) Removal, Remand, and Transfer.--
        (1) Removal.--A party may remove any claim or cause of action 
    in a civil action, other than a proceeding before the United States 
    Tax Court or a civil action by a governmental unit to enforce the 
    police or regulatory power of the governmental unit, to the 
    district court for the district in which the civil action is 
    pending, if the district court has jurisdiction of the claim or 
    cause of action under this section.
        (2) Remand.--The district court to which the claim or cause of 
    action is removed under paragraph (1) may remand the claim or cause 
    of action on any equitable ground. An order entered under this 
    subsection remanding a claim or cause of action, or a decision not 
    to remand, is not reviewable by appeal or otherwise by the court of 
    appeals under section 158(d), 1291 or 1292 of title 28, United 
    States Code, or by the Supreme Court of the United States under 
    section 1254 of title 28, United States Code.
        (3) Transfer.--A district court shall transfer any civil 
    proceeding arising under this title, or arising in or related to a 
    case under this title, to the district court in which the case 
    under this title is pending.
    (e) Appeal.--
        (1) An appeal shall be taken in the same manner as appeals in 
    civil proceedings generally are taken to the courts of appeals from 
    the district court.
        (2) The court of appeals for the circuit in which a case under 
    this title has venue pursuant to section 307 of this title shall 
    have jurisdiction of appeals from all final decisions, judgments, 
    orders and decrees entered under this title by the district court.
        (3) The court of appeals for the circuit in which a case under 
    this title has venue pursuant to section 307 of this title shall 
    have jurisdiction to hear appeals of interlocutory orders or 
    decrees if--
            (A) the district court on its own motion or on the request 
        of a party to the order or decree certifies that--
                (i) the order or decree involves a question of law as 
            to which there is no controlling decision of the court of 
            appeals for the circuit or of the Supreme Court of the 
            United States, or involves a matter of public importance;
                (ii) the order or decree involves a question of law 
            requiring the resolution of conflicting decisions; or
                (iii) an immediate appeal from the order or decree may 
            materially advance the progress of the case or proceeding 
            in which the appeal is taken; and
            (B) the court of appeals authorizes the direct appeal of 
        the order or decree.
        (4) If the district court on its own motion or on the request 
    of a party determines that a circumstance specified in clauses (i), 
    (ii), or (iii) of paragraph (3)(A) exists, then the district court 
    shall make the certification described in paragraph (3).
        (5) The parties may supplement the certification with a short 
    statement of the basis for the certification issued by the district 
    court under paragraph (3)(A).
        (6) Except as provided in section 304(d), an appeal of an 
    interlocutory order or decree does not stay any proceeding of the 
    district court from which the appeal is taken unless the district 
    court, or the court of appeals in which the appeal is pending, 
    issues a stay of such proceedings pending the appeal.
        (7) Any request for a certification in respect to an 
    interlocutory appeal of an order or decree shall be made not later 
    than 60 days after the entry of the order or decree.
    (f) Reallocation of Court Staff.--Notwithstanding any law to the 
contrary, the clerk of the court in which a case is pending shall 
reallocate as many staff and assistants as the clerk deems necessary to 
ensure that the court has adequate resources to provide for proper case 
management.
    SEC. 307. VENUE.
    (a) In General.--Venue shall be proper in--
        (1) with respect to a territory, the district court for the 
    territory or, for any territory that does not have a district 
    court, the United States District Court for the District of Hawaii; 
    and
        (2) with respect to a covered territorial instrumentality, the 
    district court for the territory in which the covered territorial 
    instrumentality is located or, for any territory that does not have 
    a district court, the United States District Court for the District 
    of Hawaii.
    (b) Alternative Venue.--
        (1) If the Oversight Board so determines in its sole 
    discretion, then venue shall be proper in the district court for 
    the jurisdiction in which the Oversight Board maintains an office 
    that is located outside the territory.
        (2) With respect to paragraph (1), the Oversight Board may 
    consider, among other things--
            (A) the resources of the district court to adjudicate a 
        case or proceeding; and
            (B) the impact on witnesses who may be called in such a 
        case or proceeding.
    SEC. 308. SELECTION OF PRESIDING JUDGE.
    (a) For cases in which the debtor is a territory, the Chief Justice 
of the United States shall designate a district court judge to sit by 
designation to conduct the case.
    (b) For cases in which the debtor is not a territory, and no motion 
for joint administration of the debtor's case with the case of its 
affiliate territory has been filed or there is no case in which the 
affiliate territory is a debtor, the chief judge of the court of 
appeals for the circuit embracing the district in which the case is 
commenced shall designate a district court judge to conduct the case.
    SEC. 309. ABSTENTION.
    Nothing in this title prevents a district court in the interests of 
justice from abstaining from hearing a particular proceeding arising in 
or related to a case under this title.
    SEC. 310. APPLICABLE RULES OF PROCEDURE.
    The Federal Rules of Bankruptcy Procedure shall apply to a case 
under this title and to all civil proceedings arising in or related to 
cases under this title.
    SEC. 311. LEASES.
    A lease to a territory or territorial instrumentality shall not be 
treated as an executory contract or unexpired lease for the purposes of 
section 365 or 502(b)(6) of title 11, United States Code, solely by 
reason of the lease being subject to termination in the event the 
debtor fails to appropriate rent.
    SEC. 312. FILING OF PLAN OF ADJUSTMENT.
    (a) Exclusivity.--Only the Oversight Board, after the issuance of a 
certificate pursuant to section 104(j) of this Act, may file a plan of 
adjustment of the debts of the debtor.
    (b) Deadline for Filing Plan.--If the Oversight Board does not file 
a plan of adjustment with the petition, the Oversight Board shall file 
a plan of adjustment at the time set by the court.
    SEC. 313. MODIFICATION OF PLAN.
    The Oversight Board, after the issuance of a certification pursuant 
to section 104(j) of this Act, may modify the plan at any time before 
confirmation, but may not modify the plan so that the plan as modified 
fails to meet the requirements of this title. After the Oversight Board 
files a modification, the plan as modified becomes the plan.
    SEC. 314. CONFIRMATION.
    (a) Objection.--A special tax payer may object to confirmation of a 
plan.
    (b) Confirmation.--The court shall confirm the plan if--
        (1) the plan complies with the provisions of title 11 of the 
    United States Code, made applicable to a case under this title by 
    section 301 of this Act;
        (2) the plan complies with the provisions of this title;
        (3) the debtor is not prohibited by law from taking any action 
    necessary to carry out the plan;
        (4) except to the extent that the holder of a particular claim 
    has agreed to a different treatment of such claim, the plan 
    provides that on the effective date of the plan each holder of a 
    claim of a kind specified in 507(a)(2) of title 11, United States 
    Code, will receive on account of such claim cash equal to the 
    allowed amount of such claim;
        (5) any legislative, regulatory, or electoral approval 
    necessary under applicable law in order to carry out any provision 
    of the plan has been obtained, or such provision is expressly 
    conditioned on such approval;
        (6) the plan is feasible and in the best interests of 
    creditors, which shall require the court to consider whether 
    available remedies under the non-bankruptcy laws and constitution 
    of the territory would result in a greater recovery for the 
    creditors than is provided by such plan; and
        (7) the plan is consistent with the applicable Fiscal Plan 
    certified by the Oversight Board under title II.
    (c) Confirmation for Debtors With a Single Class of Claims.--If all 
of the requirements of section 314(b) of this title and section 1129(a) 
of title 11, United States Code, incorporated into this title by 
section 301 other than sections 1129(a)(8) and 1129(a)(10) are met with 
respect to a plan--
        (1) with respect to which all claims are substantially similar 
    under section 301(e) of this title;
        (2) that includes only one class of claims, which claims are 
    impaired claims; and
        (3) that was not accepted by such impaired class,
the court shall confirm the plan notwithstanding the requirements of 
such sections 1129(a)(8) and 1129(a)(10) of title 11, United States 
Code if the plan is fair and equitable and does not discriminate 
unfairly with respect to such impaired class.
    SEC. 315. ROLE AND CAPACITY OF OVERSIGHT BOARD.
    (a) Actions of Oversight Board.--For the purposes of this title, 
the Oversight Board may take any action necessary on behalf of the 
debtor to prosecute the case of the debtor, including--
        (1) filing a petition under section 304 of this Act;
        (2) submitting or modifying a plan of adjustment under sections 
    312 and 313; or
        (3) otherwise generally submitting filings in relation to the 
    case with the court.
    (b) Representative of Debtor.--The Oversight Board in a case under 
this title is the representative of the debtor.
    SEC. 316. COMPENSATION OF PROFESSIONALS.
    (a) After notice to the parties in interest and the United States 
Trustee and a hearing, the court may award to a professional person 
employed by the debtor (in the debtor's sole discretion), the Oversight 
Board (in the Oversight Board's sole discretion), a committee under 
section 1103 of title 11, United States Code, or a trustee appointed by 
the court under section 926 of title 11, United States Code--
        (1) reasonable compensation for actual, necessary services 
    rendered by the professional person, or attorney and by any 
    paraprofessional person employed by any such person; and
        (2) reimbursement for actual, necessary expenses.
    (b) The court may, on its own motion or on the motion of the United 
States Trustee or any other party in interest, award compensation that 
is less than the amount of compensation that is requested.
    (c) In determining the amount of reasonable compensation to be 
awarded to a professional person, the court shall consider the nature, 
the extent, and the value of such services, taking into account all 
relevant factors, including--
        (1) the time spent on such services;
        (2) the rates charged for such services;
        (3) whether the services were necessary to the administration 
    of, or beneficial at the time at which the service was rendered 
    toward the completion of, a case under this chapter;
        (4) whether the services were performed within a reasonable 
    amount of time commensurate with the complexity, importance, and 
    nature of the problem, issue, or task addressed;
        (5) with respect to a professional person, whether the person 
    is board certified or otherwise has demonstrated skill and 
    experience in the restructuring field; and
        (6) whether the compensation is reasonable based on the 
    customary compensation charged by comparably skilled practitioners 
    in cases other than cases under this title or title 11, United 
    States Code.
    (d) The court shall not allow compensation for--
        (1) unnecessary duplication of services; or
        (2) services that were not--
            (A) reasonably likely to benefit the debtor; or
            (B) necessary to the administration of the case.
    (e) The court shall reduce the amount of compensation awarded under 
this section by the amount of any interim compensation awarded under 
section 317 of this title, and, if the amount of such interim 
compensation exceeds the amount of compensation awarded under this 
section, may order the return of the excess to the debtor.
    (f) Any compensation awarded for the preparation of a fee 
application shall be based on the level and skill reasonably required 
to prepare the application.
    SEC. 317. INTERIM COMPENSATION.
    A debtor's attorney, or any professional person employed by the 
debtor (in the debtor's sole discretion), the Oversight Board (in the 
Oversight Board's sole discretion), a committee under section 1103 of 
title 11, United States Code, or a trustee appointed by the court under 
section 926 of title 11, United States Code, may apply to the court not 
more than once every 120 days after an order for relief in a case under 
this title, or more often if the court permits, for such compensation 
for services rendered before the date of such an application or 
reimbursement for expenses incurred before such date as is provided 
under section 316 of this title.

                   TITLE IV--MISCELLANEOUS PROVISIONS

    SEC. 401. RULES OF CONSTRUCTION.
    Nothing in this Act is intended, or may be construed--
        (1) to limit the authority of Congress to exercise legislative 
    authority over the territories pursuant to Article IV, section 3 of 
    the Constitution of the United States;
        (2) to authorize the application of section 104(f) of this Act 
    (relating to issuance of subpoenas) to judicial officers or 
    employees of territory courts;
        (3) to alter, amend, or abrogate any provision of the Covenant 
    To Establish a Commonwealth of the Northern Mariana Islands in 
    Political Union With the United States of America (48 U.S.C. 1801 
    et seq.); or
        (4) to alter, amend, or abrogate the treaties of cession 
    regarding certain islands of American Samoa (48 U.S.C. 1661).
    SEC. 402. RIGHT OF PUERTO RICO TO DETERMINE ITS FUTURE POLITICAL 
      STATUS.
    Nothing in this Act shall be interpreted to restrict Puerto Rico's 
right to determine its future political status, including by conducting 
the plebiscite as authorized by Public Law 113-76.
    SEC. 403. FIRST MINIMUM WAGE IN PUERTO RICO.
    Section 6(g) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
206(g)) is amended by striking paragraphs (2) through (4) and inserting 
the following:
    ``(2) In lieu of the rate prescribed by subsection (a)(1), the 
Governor of Puerto Rico, subject to the approval of the Financial 
Oversight and Management Board established pursuant to section 101 of 
the Puerto Rico Oversight, Management, and Economic Stability Act, may 
designate a time period not to exceed four years during which employers 
in Puerto Rico may pay employees who are initially employed after the 
date of enactment of such Act a wage which is not less than the wage 
described in paragraph (1). Notwithstanding the time period designated, 
such wage shall not continue in effect after such Board terminates in 
accordance with section 209 of such Act.
    ``(3) No employer may take any action to displace employees 
(including partial displacements such as reduction in hours, wages, or 
employment benefits) for purposes of hiring individuals at the wage 
authorized in paragraph (1) or (2).
    ``(4) Any employer who violates this subsection shall be considered 
to have violated section 15(a)(3) (29 U.S.C. 215(a)(3)).
    ``(5) This subsection shall only apply to an employee who has not 
attained the age of 20 years, except in the case of the wage applicable 
in Puerto Rico, 25 years, until such time as the Board described in 
paragraph (2) terminates in accordance with section 209 of the Act 
described in such paragraph.''.
    SEC. 404. APPLICATION OF REGULATION TO PUERTO RICO.
    (a) Special Rule.--The regulations proposed by the Secretary of 
Labor relating to exemptions regarding the rates of pay for executive, 
administrative, professional, outside sales, and computer employees, 
and published in a notice in the Federal Register on July 6, 2015, and 
any final regulations issued related to such notice, shall have no 
force or effect in the Commonwealth of Puerto Rico until--
        (1) the Comptroller General of the United States completes the 
    assessment and transmits the report required under subsection (b); 
    and
        (2) the Secretary of Labor, taking into account the assessment 
    and report of the Comptroller General, provides a written 
    determination to Congress that applying such rule to Puerto Rico 
    would not have a negative impact on the economy of Puerto Rico.
    (b) Assessment and Report.--Not later than two years after the date 
of enactment of this Act, the Comptroller General shall examine the 
economic conditions in Puerto Rico and shall transmit a report to 
Congress assessing the impact of applying the regulations described in 
subsection (a) to Puerto Rico, taking into consideration regional, 
metropolitan, and non-metropolitan salary and cost-of-living 
differences.
    (c) Sense of Congress.--It is the sense of Congress that--
        (1) the Bureau of the Census should conduct a study to 
    determine the feasibility of expanding data collection to include 
    Puerto Rico and the other United States territories in the Current 
    Population Survey, which is jointly administered by the Bureau of 
    the Census and the Bureau of Labor Statistics, and which is the 
    primary source of labor force statistics for the population of the 
    United States; and
        (2) if necessary, the Bureau of the Census should request the 
    funding required to conduct this feasibility study as part of its 
    budget submission to Congress for fiscal year 2018.
    SEC. 405. AUTOMATIC STAY UPON ENACTMENT.
    (a) Definitions.--In this section:
        (1) Liability.--The term ``Liability'' means a bond, loan, 
    letter of credit, other borrowing title, obligation of insurance, 
    or other financial indebtedness for borrowed money, including 
    rights, entitlements, or obligations whether such rights, 
    entitlements, or obligations arise from contract, statute, or any 
    other source of law related to such a bond, loan, letter of credit, 
    other borrowing title, obligation of insurance, or other financial 
    indebtedness in physical or dematerialized form, of which--
            (A) the issuer, obligor, or guarantor is the Government of 
        Puerto Rico; and
            (B) the date of issuance or incurrence precedes the date of 
        enactment of this Act.
        (2) Liability claim.--The term ``Liability Claim'' means, as it 
    relates to a Liability--
            (A) right to payment, whether or not such right is reduced 
        to judgment, liquidated, unliquidated, fixed, contingent, 
        matured, unmatured, disputed, undisputed, legal, equitable, 
        secured, or unsecured; or
            (B) right to an equitable remedy for breach of performance 
        if such breach gives rise to a right to payment, whether or not 
        such right to an equitable remedy is reduced to judgment, 
        fixed, contingent, matured, unmatured, disputed, undisputed, 
        secured, or unsecured.
    (b) In General.--Except as provided in subsection (c) of this 
section, the establishment of an Oversight Board for Puerto Rico (i.e., 
the enactment of this Act) in accordance with section 101 operates with 
respect to a Liability as a stay, applicable to all entities (as such 
term is defined in section 101 of title 11, United States Code), of--
        (1) the commencement or continuation, including the issuance or 
    employment of process, of a judicial, administrative, or other 
    action or proceeding against the Government of Puerto Rico that was 
    or could have been commenced before the enactment of this Act, or 
    to recover a Liability Claim against the Government of Puerto Rico 
    that arose before the enactment of this Act;
        (2) the enforcement, against the Government of Puerto Rico or 
    against property of the Government of Puerto Rico, of a judgment 
    obtained before the enactment of this Act;
        (3) any act to obtain possession of property of the Government 
    of Puerto Rico or of property from the Government of Puerto Rico or 
    to exercise control over property of the Government of Puerto Rico;
        (4) any act to create, perfect, or enforce any lien against 
    property of the Government of Puerto Rico;
        (5) any act to create, perfect, or enforce against property of 
    the Government of Puerto Rico any lien to the extent that such lien 
    secures a Liability Claim that arose before the enactment of this 
    Act;
        (6) any act to collect, assess, or recover a Liability Claim 
    against the Government of Puerto Rico that arose before the 
    enactment of this Act; and
        (7) the setoff of any debt owing to the Government of Puerto 
    Rico that arose before the enactment of this Act against any 
    Liability Claim against the Government of Puerto Rico.
    (c) Stay Not Operable.--The establishment of an Oversight Board for 
Puerto Rico in accordance with section 101 does not operate as a stay--
        (1) solely under subsection (b)(1) of this section, of the 
    continuation of, including the issuance or employment of process, 
    of a judicial, administrative, or other action or proceeding 
    against the Government of Puerto Rico that was commenced on or 
    before December 18, 2015; or
        (2) of the commencement or continuation of an action or 
    proceeding by a governmental unit to enforce such governmental 
    unit's or organization's police and regulatory power, including the 
    enforcement of a judgment other than a money judgment, obtained in 
    an action or proceeding by the governmental unit to enforce such 
    governmental unit's or organization's police or regulatory power.
    (d) Continuation of Stay.--Except as provided in subsections (e), 
(f), and (g) the stay under subsection (b) continues until the earlier 
of--
        (1) the later of--
            (A) the later of--
                (i) February 15, 2017; or
                (ii) six months after the establishment of an Oversight 
            Board for Puerto Rico as established by section 101(b);
            (B) the date that is 75 days after the date in subparagraph 
        (A) if the Oversight Board delivers a certification to the 
        Governor that, in the Oversight Board's sole discretion, an 
        additional 75 days are needed to seek to complete a voluntary 
        process under title VI of this Act with respect to the 
        government of the Commonwealth of Puerto Rico or any of its 
        territorial instrumentalities; or
            (C) the date that is 60 days after the date in subparagraph 
        (A) if the district court to which an application has been 
        submitted under subparagraph 601(m)(1)(D) of this Act 
        determines, in the exercise of the court's equitable powers, 
        that an additional 60 days are needed to complete a voluntary 
        process under title VI of this Act with respect to the 
        government of the Commonwealth of Puerto Rico or any of its 
        territorial instrumentalities; or
        (2) with respect to the government of the Commonwealth of 
    Puerto Rico or any of its territorial instrumentalities, the date 
    on which a case is filed by or on behalf of the government of the 
    Commonwealth of Puerto Rico or any of its territorial 
    instrumentalities, as applicable, under title III.
    (e) Jurisdiction, Relief From Stay.--
        (1) The United States District Court for the District of Puerto 
    Rico shall have original and exclusive jurisdiction of any civil 
    actions arising under or related to this section.
        (2) On motion of or action filed by a party in interest and 
    after notice and a hearing, the United States District Court for 
    the District of Puerto Rico, for cause shown, shall grant relief 
    from the stay provided under subsection (b) of this section.
    (f) Termination of Stay; Hearing.--Forty-five days after a request 
under subsection (e)(2) for relief from the stay of any act against 
property of the Government of Puerto Rico under subsection (b), such 
stay is terminated with respect to the party in interest making such 
request, unless the court, after notice and a hearing, orders such stay 
continued in effect pending the conclusion of, or as a result of, a 
final hearing and determination under subsection (e)(2). A hearing 
under this subsection may be a preliminary hearing, or may be 
consolidated with the final hearing under subsection (e)(2). The court 
shall order such stay continued in effect pending the conclusion of the 
final hearing under subsection (e)(2) if there is a reasonable 
likelihood that the party opposing relief from such stay will prevail 
at the conclusion of such final hearing. If the hearing under this 
subsection is a preliminary hearing, then such final hearing shall be 
concluded not later than thirty days after the conclusion of such 
preliminary hearing, unless the thirty-day period is extended with the 
consent of the parties in interest or for a specific time which the 
court finds is required by compelling circumstances.
    (g) Relief To Prevent Irreparable Damage.--Upon request of a party 
in interest, the court, with or without a hearing, shall grant such 
relief from the stay provided under subsection (b) as is necessary to 
prevent irreparable damage to the interest of an entity in property, if 
such interest will suffer such damage before there is an opportunity 
for notice and a hearing under subsection (e) or (f).
    (h) Act in Violation of Stay Is Void.--Any order, judgment, or 
decree entered in violation of this section and any act taken in 
violation of this section is void, and shall have no force or effect, 
and any person found to violate this section may be liable for damages, 
costs, and attorneys' fees incurred in defending any action taken in 
violation of this section, and the Oversight Board or the Government of 
Puerto Rico may seek an order from the court enforcing the provisions 
of this section.
    (i) Government of Puerto Rico.--For purposes of this section, the 
term ``Government of Puerto Rico'', in addition to the definition set 
forth in section 5(11) of this Act, shall include--
        (1) the individuals, including elected and appointed officials, 
    directors, officers of and employees acting in their official 
    capacity on behalf of the Government of Puerto Rico; and
        (2) the Oversight Board, including the directors and officers 
    of and employees acting in their official capacity on behalf of the 
    Oversight Board.
    (j) No Default Under Existing Contracts.--
        (1) Notwithstanding any contractual provision or applicable law 
    to the contrary and so long as a stay under this section is in 
    effect, the holder of a Liability Claim or any other claim (as such 
    term is defined in section 101 of title 11, United States Code) may 
    not exercise or continue to exercise any remedy under a contract or 
    applicable law in respect to the Government of Puerto Rico or any 
    of its property--
            (A) that is conditioned upon the financial condition of, or 
        the commencement of a restructuring, insolvency, bankruptcy, or 
        other proceeding (or a similar or analogous process) by, the 
        Government of Puerto Rico, including a default or an event of 
        default thereunder; or
            (B) with respect to Liability Claims--
                (i) for the non-payment of principal or interest; or
                (ii) for the breach of any condition or covenant.
        (2) The term ``remedy'' as used in paragraph (1) shall be 
    interpreted broadly, and shall include any right existing in law or 
    contract, including any right to--
            (A) setoff;
            (B) apply or appropriate funds;
            (C) seek the appointment of a custodian (as such term is 
        defined in section 101(11) of title 11, United States Code);
            (D) seek to raise rates; or
            (E) exercise control over property of the Government of 
        Puerto Rico.
        (3) Notwithstanding any contractual provision or applicable law 
    to the contrary and so long as a stay under this section is in 
    effect, a contract to which the Government of Puerto Rico is a 
    party may not be terminated or modified, and any right or 
    obligation under such contract may not be terminated or modified, 
    solely because of a provision in such contract is conditioned on--
            (A) the insolvency or financial condition of the Government 
        of Puerto Rico at any time prior to the enactment of this Act;
            (B) the adoption of a resolution or establishment of an 
        Oversight Board pursuant to section 101 of this Act; or
            (C) a default under a separate contract that is due to, 
        triggered by, or a result of the occurrence of the events or 
        matters in paragraph (1)(B).
        (4) Notwithstanding any contractual provision to the contrary 
    and so long as a stay under this section is in effect, a 
    counterparty to a contract with the Government of Puerto Rico for 
    the provision of goods and services shall, unless the Government of 
    Puerto Rico agrees to the contrary in writing, continue to perform 
    all obligations under, and comply with the terms of, such contract, 
    provided that the Government of Puerto Rico is not in default under 
    such contract other than as a result of a condition specified in 
    paragraph (3).
    (k) Effect.--This section does not discharge an obligation of the 
Government of Puerto Rico or release, invalidate, or impair any 
security interest or lien securing such obligation. This section does 
not impair or affect the implementation of any restructuring support 
agreement executed by the Government of Puerto Rico to be implemented 
pursuant to Puerto Rico law specifically enacted for that purpose prior 
to the enactment of this Act or the obligation of the Government of 
Puerto Rico to proceed in good faith as set forth in any such 
agreement.
    (l) Payments on Liabilities.--Nothing in this section shall be 
construed to prohibit the Government of Puerto Rico from making any 
payment on any Liability when such payment becomes due during the term 
of the stay, and to the extent the Oversight Board, in its sole 
discretion, determines it is feasible, the Government of Puerto Rico 
shall make interest payments on outstanding indebtedness when such 
payments become due during the length of the stay.
    (m) Findings.--Congress finds the following:
        (1) A combination of severe economic decline, and, at times, 
    accumulated operating deficits, lack of financial transparency, 
    management inefficiencies, and excessive borrowing has created a 
    fiscal emergency in Puerto Rico.
        (2) As a result of its fiscal emergency, the Government of 
    Puerto Rico has been unable to provide its citizens with effective 
    services.
        (3) The current fiscal emergency has also affected the long-
    term economic stability of Puerto Rico by contributing to the 
    accelerated outmigration of residents and businesses.
        (4) A comprehensive approach to fiscal, management, and 
    structural problems and adjustments that exempts no part of the 
    Government of Puerto Rico is necessary, involving independent 
    oversight and a Federal statutory authority for the Government of 
    Puerto Rico to restructure debts in a fair and orderly process.
        (5) Additionally, an immediate--but temporary--stay is 
    essential to stabilize the region for the purposes of resolving 
    this territorial crisis.
            (A) The stay advances the best interests common to all 
        stakeholders, including but not limited to a functioning 
        independent Oversight Board created pursuant to this Act to 
        determine whether to appear or intervene on behalf of the 
        Government of Puerto Rico in any litigation that may have been 
        commenced prior to the effectiveness or upon expiration of the 
        stay.
            (B) The stay is limited in nature and narrowly tailored to 
        achieve the purposes of this Act, including to ensure all 
        creditors have a fair opportunity to consensually renegotiate 
        terms of repayment based on accurate financial information that 
        is reviewed by an independent authority or, at a minimum, 
        receive a recovery from the Government of Puerto Rico equal to 
        their best possible outcome absent the provisions of this Act.
        (6) Finally, the ability of the Government of Puerto Rico to 
    obtain funds from capital markets in the future will be severely 
    diminished without congressional action to restore its financial 
    accountability and stability.
    (n) Purposes.--The purposes of this section are to--
        (1) provide the Government of Puerto Rico with the resources 
    and the tools it needs to address an immediate existing and 
    imminent crisis;
        (2) allow the Government of Puerto Rico a limited period of 
    time during which it can focus its resources on negotiating a 
    voluntary resolution with its creditors instead of defending 
    numerous, costly creditor lawsuits;
        (3) provide an oversight mechanism to assist the Government of 
    Puerto Rico in reforming its fiscal governance and support the 
    implementation of potential debt restructuring;
        (4) make available a Federal restructuring authority, if 
    necessary, to allow for an orderly adjustment of all of the 
    Government of Puerto Rico's liabilities; and
        (5) benefit the lives of 3.5 million American citizens living 
    in Puerto Rico by encouraging the Government of Puerto Rico to 
    resolve its longstanding fiscal governance issues and return to 
    economic growth.
    (o) Voting on Voluntary Agreements Not Stayed.--Notwithstanding any 
provision in this section to the contrary, nothing in this section 
shall prevent the holder of a Liability Claim from voting on or 
consenting to a proposed modification of such Liability Claim under 
title VI of this Act.
    SEC. 406. PURCHASES BY TERRITORY GOVERNMENTS.
    The text of section 302 of the Omnibus Insular Areas Act of 1992 
(48 U.S.C. 1469e), is amended to read as follows: ``The Governments of 
the Commonwealth of Puerto Rico, Guam, American Samoa, the Commonwealth 
of the Northern Mariana Islands, and the United States Virgin Islands 
are authorized to make purchases through the General Services 
Administration.''.
    SEC. 407. PROTECTION FROM INTER-DEBTOR TRANSFERS.
    (a) Protection of Creditors.--While an Oversight Board for Puerto 
Rico is in existence, if any property of any territorial 
instrumentality of Puerto Rico is transferred in violation of 
applicable law under which any creditor has a valid pledge of, security 
interest in, or lien on such property, or which deprives any such 
territorial instrumentality of property in violation of applicable law 
assuring the transfer of such property to such territorial 
instrumentality for the benefit of its creditors, then the transferee 
shall be liable for the value of such property.
    (b) Enforceability.--A creditor may enforce rights under this 
section by bringing an action in the United States District Court for 
the District of Puerto Rico after the expiration or lifting of the stay 
of section 405, unless a stay under title III is in effect.
    SEC. 408. GAO REPORT ON SMALL BUSINESS ADMINISTRATION PROGRAMS IN 
      PUERTO RICO.
    Section 15 of the Small Business Act (15 U.S.C. 644) is amended by 
adding at the end the following new subsection:
    ``(t) GAO Report on Small Business Administration Programs in 
Puerto Rico.--Not later than one year after the date of enactment of 
this subsection, the Comptroller General of the United States shall 
submit to the Committee on Small Business of the House of 
Representatives and the Committee on Small Business and 
Entrepreneurship of the Senate a report on the application and 
utilization of contracting activities of the Administration (including 
contracting activities relating to HUBZone small business concerns) in 
Puerto Rico. The report shall also identify any provisions of Federal 
law that may create an obstacle to the efficient implementation of such 
contracting activities.''.
    SEC. 409. CONGRESSIONAL TASK FORCE ON ECONOMIC GROWTH IN PUERTO 
      RICO.
    (a) Establishment.--There is established within the legislative 
branch a Congressional Task Force on Economic Growth in Puerto Rico 
(hereinafter referred to as the ``Task Force'').
    (b) Membership.--The Task Force shall be composed of eight members 
as follows:
        (1) One member of the House of Representatives, who shall be 
    appointed by the Speaker of the House of Representatives, in 
    coordination with the Chairman of the Committee on Natural 
    Resources of the House of Representatives.
        (2) One member of the House of Representatives, who shall be 
    appointed by the Speaker of the House of Representatives, in 
    coordination with the Chairman of the Committee on Ways and Means 
    of the House of Representatives.
        (3) One member of the House of Representatives, who shall be 
    appointed by the Minority Leader of the House of Representatives, 
    in coordination with the ranking minority member of the Committee 
    on Natural Resources of the House of Representatives.
        (4) One member of the House of Representatives, who shall be 
    appointed by the Minority Leader of the House of Representatives, 
    in coordination with the ranking minority member of the Committee 
    on Ways and Means of the House of Representatives.
        (5) One member of the Senate, who shall be appointed by the 
    Majority Leader of the Senate, in coordination with the Chairman of 
    the Committee on Energy and Natural Resources of the Senate.
        (6) One member of the Senate, who shall be appointed by the 
    Majority Leader of the Senate, in coordination with the Chairman of 
    the Committee on Finance of the Senate.
        (7) One member of the Senate, who shall be appointed by the 
    Minority Leader of the Senate, in coordination with the ranking 
    minority member of the Committee on Energy and Natural Resources of 
    the Senate.
        (8) One member of the Senate, who shall be appointed by the 
    Minority Leader of the Senate, in coordination with the ranking 
    minority member of the Committee on Finance of the Senate.
    (c) Deadline for Appointment.--All appointments to the Task Force 
shall be made not later than 15 days after the date of enactment of 
this Act.
    (d) Chair.--The Speaker shall designate one Member to serve as 
chair of the Task Force.
    (e) Vacancies.--Any vacancy in the Task Force shall be filled in 
the same manner as the original appointment.
    (f) Status Update.--Between September 1, 2016, and September 15, 
2016, the Task Force shall provide a status update to the House and 
Senate that includes--
        (1) information the Task Force has collected; and
        (2) a discussion on matters the chairman of the Task Force 
    deems urgent for consideration by Congress.
    (g) Report.--Not later than December 31, 2016, the Task Force shall 
issue a report of its findings to the House and Senate regarding--
        (1) impediments in current Federal law and programs to economic 
    growth in Puerto Rico including equitable access to Federal health 
    care programs;
        (2) recommended changes to Federal law and programs that, if 
    adopted, would serve to spur sustainable long-term economic growth, 
    job creation, reduce child poverty, and attract investment in 
    Puerto Rico;
        (3) the economic effect of Administrative Order No. 346 of the 
    Department of Health of the Commonwealth of Puerto Rico (relating 
    to natural products, natural supplements, and dietary supplements) 
    or any successor or substantially similar order, rule, or guidance 
    of the Commonwealth of Puerto Rico; and
        (4) additional information the Task Force deems appropriate.
    (h) Consensus Views.--To the greatest extent practicable, the 
report issued under subsection (f) shall reflect the shared views of 
all eight Members, except that the report may contain dissenting views.
    (i) Hearings and Sessions.--The Task Force may, for the purpose of 
carrying out this section, hold hearings, sit and act at times and 
places, take testimony, and receive evidence as the Task Force 
considers appropriate. If the Task Force holds hearings, at least one 
such hearing must be held in Puerto Rico.
    (j) Stakeholder Participation.--In carrying out its duties, the 
Task Force shall consult with the Puerto Rico Legislative Assembly, the 
Puerto Rico Department of Economic Development and Commerce, and the 
private sector of Puerto Rico.
    (k) Resources.--The Task Force shall carry out its duties by 
utilizing existing facilities, services, and staff of the House of 
Representatives and Senate, except that no additional funds are 
authorized to be appropriated to carry out this section.
    (l) Termination.--The Task Force shall terminate upon issuing the 
report required under subsection (f).
    SEC. 410. REPORT.
    Not later than 18 months after the date of the enactment of this 
Act, the Comptroller General shall submit a report to the Committee on 
Natural Resources of the House of Representatives and the Committee on 
Energy and Natural Resources of the Senate describing--
        (1) the conditions which led to the level of debt, which should 
    be analyzed, per capita and based upon overall economic activity;
        (2) how actions of the territorial government improved or 
    impaired the territory's financial conditions; and
        (3) recommendations on non-fiscal actions, or policies that 
    would not imperil America's homeland and national security, that 
    could be taken by Congress or the Administration to avert future 
    indebtedness of territories, while respecting sovereignty and 
    constitutional parameters.
    SEC. 411. REPORT ON TERRITORIAL DEBT.
    (a) Report Required.--Not later than one year after the date of the 
enactment of this Act, and thereafter not less than once every two 
years, the Comptroller General of the United States shall submit to 
Congress a report on the public debt of each territory, including--
        (1) the historical levels of each territory's public debt, 
    current amount and composition of each territory's public debt, and 
    future projections of each territory's public debt;
        (2) the historical levels of each territory's revenue, current 
    amount and composition of each territory's revenue, and future 
    projections of each territory's revenue;
        (3) the drivers and composition of each territory's public 
    debt;
        (4) the effect of Federal laws, mandates, rules, and 
    regulations on each territory's public debt; and
        (5) the ability of each territory to repay it's public debt.
    (b) Materials.--The government of each territory shall make 
available to the Comptroller General of the United States all materials 
necessary to carry out this section.
    SEC. 412. EXPANSION OF HUBZONES IN PUERTO RICO.
    (a)  In General.--
        (1) Section 3(p)(4)(A) of the Small Business Act (15 U.S.C. 
    632(p)(4)(A)) is amended to read as follows:
            ``(A) Qualified census tract.--
                ``(i) In general.--The term `qualified census tract' 
            has the meaning given that term in section 42(d)(5)(B)(ii) 
            of the Internal Revenue Code of 1986.
                ``(ii) Exception.--For any metropolitan statistical 
            area in the Commonwealth of Puerto Rico, the term 
            `qualified census tract' has the meaning given that term in 
            section 42(d)(5)(B)(ii) of the Internal Revenue Code of 
            1986 as applied without regard to subclause (II) of such 
            section, except that this clause shall only apply--

                    ``(I) 10 years after the date that the 
                Administrator implements this clause, or
                    ``(II) the date on which the Financial Oversight 
                and Management Board for the Commonwealth of Puerto 
                Rico created by the Puerto Rico Oversight, Management, 
                and Economic Stability Act ceases to exist,

            whichever event occurs first.''.
        (2) Regulations.--The Administrator of the Small Business 
    Administration shall issue regulations to implement the amendment 
    made by paragraph (1) not later than 90 days after the date of the 
    enactment of this Act.
    (b) Improving Oversight.--
        (1) Guidance.--Not later than 270 days after the date of the 
    enactment of this Act, the Administrator of the Small Business 
    Administration shall develop and implement criteria and guidance on 
    using a risk-based approach to requesting and verifying information 
    from entities applying to be designated or recertified as qualified 
    HUBZone small business concerns (as defined in section 3(p)(5) of 
    the Small Business Act (15 U.S.C. 632(p)(5))).
        (2) Assessment.--Not later 1 year after the date on which the 
    criteria and guidance described in paragraph (1) is implemented, 
    the Comptroller General of the United States shall begin an 
    assessment of such criteria and guidance. Not later than 6 months 
    after beginning such an assessment, the Comptroller General shall 
    submit a report to the Committee on Small Business and 
    Entrepreneurship of the Senate and the Committee on Small Business 
    of the House of Representatives that includes--
            (A) an assessment of the criteria and guidance issued by 
        the Administrator of the Small Business Administration in 
        accordance with paragraph (1);
            (B) an assessment of the implementation of the criteria and 
        guidance issued by issued by the Administrator of the Small 
        Business Administration in accordance with paragraph (1);
            (C) an assessment as to whether these measures have 
        successfully ensured that only qualified HUBZone small business 
        concerns are participating in the HUBZone program under section 
        31 of the Small Business Act (15 U.S.C. 657a);
            (D) an assessment as to whether the reforms made by the 
        criteria and guidance implemented under paragraph (1) have 
        resulted in job creation in the Commonwealth of Puerto Rico; 
        and
            (E) recommendations on how to improve controls in the 
        HUBZone program.
    SEC. 413. DETERMINATION ON DEBT.
    Nothing in this Act shall be interpreted to restrict--
        (1) the ability of the Puerto Rico Commission for the 
    Comprehensive Audit of the Public Credit to file its reports; or
        (2) the review and consideration of the Puerto Rico 
    Commission's findings by Puerto Rico's government or an Oversight 
    Board for Puerto Rico established under section 101.

           TITLE V--PUERTO RICO INFRASTRUCTURE REVITALIZATION

    SEC. 501. DEFINITIONS.
    In this title:
        (1) Act 76.--The term ``Act 76'' means Puerto Rico Act 76-2000 
    (3 L.P.R.A. 1931 et seq.), approved on May 5, 2000, as amended.
        (2) Critical project.--The term ``Critical Project'' means a 
    project identified under the provisions of this title and 
    intimately related to addressing an emergency whose approval, 
    consideration, permitting, and implementation shall be expedited 
    and streamlined according to the statutory process provided by Act 
    76, or otherwise adopted pursuant to this title.
        (3) Energy commission of puerto rico.--The term ``Energy 
    Commission of Puerto Rico'' means the Puerto Rico Energy Commission 
    as established by Subtitle B of Puerto Rico Act 57-2014.
        (4) Energy projects.--The term ``Energy Projects'' means those 
    projects addressing the generation, distribution, or transmission 
    of energy.
        (5) Emergency.--The term ``emergency'' means any event or grave 
    problem of deterioration in the physical infrastructure for the 
    rendering of essential services to the people, or that endangers 
    the life, public health, or safety of the population or of a 
    sensitive ecosystem, or as otherwise defined by section 1 of Act 76 
    (3 L.P.R.A. 1931). This shall include problems in the physical 
    infrastructure for energy, water, sewer, solid waste, highways or 
    roads, ports, telecommunications, and other similar infrastructure.
        (6) Environmental quality board.--The term ``Environmental 
    Quality Board'' means the Puerto Rico Environmental Quality Board, 
    a board within the executive branch of the Government of Puerto 
    Rico as established by section 7 of Puerto Rico Act 416-2004 (12 
    L.P.R.A. 8002a).
        (7) Expedited permitting process.--The term ``Expedited 
    Permitting Process'' means a Puerto Rico Agency's alternate 
    procedures, conditions, and terms mirroring those established under 
    Act 76 (3 L.P.R.A. 1932) and pursuant to this title shall not apply 
    to any Federal law, statute, or requirement.
        (8) Governor.--The term ``Governor'' means the Governor of 
    Puerto Rico.
        (9) Interagency environmental subcommittee.--The term 
    ``Interagency Environmental Subcommittee'' means the Interagency 
    Subcommittee on Expedited Environmental Regulations as further 
    described by section 504.
        (10) Legislature.--The term ``Legislature'' means the 
    Legislature of Puerto Rico.
        (11) Planning board.--The term ``Planning Board'' means the 
    Puerto Rico Planning Board, a board within the executive branch of 
    the Government of Puerto Rico established by Puerto Rico Act 75-
    1975 (23 L.P.R.A. 62 et seq.).
        (12) Project sponsor.--The term ``Project Sponsor'' means a 
    Puerto Rico Agency or private party proposing the development of an 
    existing, ongoing, or new infrastructure project or Energy Project.
        (13) Puerto rico agency or agencies.--The terms ``Puerto Rico 
    Agency'' or ``Puerto Rico Agencies'' means any board, body, board 
    of examiners, public corporation, commission, independent office, 
    division, administration, bureau, department, authority, official, 
    person, entity, municipality, or any instrumentality of Puerto 
    Rico, or an administrative body authorized by law to perform duties 
    of regulating, investigating, or that may issue a decision, or with 
    the power to issue licenses, certificates, permits, concessions, 
    accreditations, privileges, franchises, except the Senate and the 
    House of Representatives of the Legislature and the judicial 
    branch.
        (14) Puerto rico electric power authority.--The term ``Puerto 
    Rico Electric Power Authority'' means the Puerto Rico Electric 
    Power Authority established by Puerto Rico Act 83-1941.
    SEC. 502. POSITION OF REVITALIZATION COORDINATOR.
    (a) Establishment.--There is established, under the Oversight 
Board, the position of the Revitalization Coordinator.
    (b) Appointment.--
        (1) In general.--The Revitalization Coordinator shall be 
    appointed by the Governor as follows:
            (A) Prior to the appointment of the Revitalization 
        Coordinator and within 60 days of the appointment of the full 
        membership of the Oversight Board, the Oversight Board shall 
        submit to the Governor no less than three nominees for 
        appointment.
            (B) In consultation with the Oversight Board, not later 
        than 10 days after receiving the nominations under subparagraph 
        (A), the Governor shall appoint one of the nominees as the 
        Revitalization Coordinator. Such appointment shall be effective 
        immediately.
            (C) If the Governor fails to select a Revitalization 
        Coordinator, the Oversight Board shall, by majority vote, 
        appoint a Revitalization Coordinator from the list of nominees 
        provided under paragraph (A).
        (2) Qualifications.--In selecting nominees under paragraph 
    (1)(A), the Oversight Board shall only nominate persons who--
            (A) have substantial knowledge and expertise in the 
        planning, predevelopment, financing, development, operations, 
        engineering, or market participation of infrastructure 
        projects, provided that stronger consideration may be given to 
        candidates who have experience with Energy Projects and the 
        laws and regulations of Puerto Rico that may be subject to an 
        Expedited Permitting Process;
            (B) does not currently provide goods or services to the 
        government of Puerto Rico (and, as applicable, is not the 
        spouse, parent, child, or sibling of a person who provides or 
        has provided goods and services to the government of Puerto 
        Rico in the preceding 3 calendar years); and
            (C) shall not be an officer, employee of, or former officer 
        or employee of the government of Puerto Rico in the preceding 3 
        calendar years.
        (3) Compensation.--The Revitalization Coordinator shall be 
    compensated at an annual rate determined by the Oversight Board 
    sufficient in the judgment of the Oversight Board to obtain the 
    services of a person with the skills and experience required to 
    discharge the duties of the position, but such compensation shall 
    not exceed the annual salary of the Executive Director.
    (c) Assignment of Personnel.--The Executive Director of the 
Oversight Board may assign Oversight Board personnel to assist the 
Revitalization Coordinator.
    (d) Removal.--
        (1) In general.--The Revitalization Coordinator may be removed 
    for any reason, in the Oversight Board's discretion.
        (2) Termination of position.--Upon the termination of the 
    Oversight Board pursuant to section 209 of this Act, the position 
    of the Revitalization Coordinator shall terminate.
    SEC. 503. CRITICAL PROJECTS.
    (a) Identification of Projects.--
        (1) Project submission.--Any Project Sponsor may submit, so 
    long as the Oversight Board is in operation, any existing, ongoing, 
    or proposed project to the Revitalization Coordinator. The 
    Revitalization Coordinator shall require such submission to 
    include--
            (A) the impact the project will have on an emergency;
            (B) the availability of immediate private capital or other 
        funds, including loan guarantees, loans, or grants to 
        implement, operate, or maintain the project;
            (C) the cost of the project and amount of Puerto Rico 
        government funds, if any, necessary to complete and maintain 
        the project;
            (D) the environmental and economic benefits provided by the 
        project, including the number of jobs to be created that will 
        be held by residents of Puerto Rico and the expected economic 
        impact, including the impact on ratepayers, if applicable;
            (E) the status of the project if it is existing or ongoing; 
        and
            (F) in addition to the requirements found in subparagraphs 
        (A) through (E), the Revitalization Coordinator may require 
        such submission to include any or all of the following criteria 
        that assess how the project will--
                (i) reduce reliance on oil for electric generation in 
            Puerto Rico;
                (ii) improve performance of energy infrastructure and 
            overall energy efficiency;
                (iii) expedite the diversification and conversion of 
            fuel sources for electric generation from oil to natural 
            gas and renewables in Puerto Rico as defined under 
            applicable Puerto Rico laws;
                (iv) promote the development and utilization of energy 
            sources found on Puerto Rico;
                (v) contribute to transitioning to privatized 
            generation capacities in Puerto Rico;
                (vi) support the Energy Commission of Puerto Rico in 
            achievement of its goal of reducing energy costs and 
            ensuring affordable energy rates for consumers and 
            business; or
                (vii) achieve in whole or in part the recommendations, 
            if feasible, of the study in section 505(d) of this title 
            to the extent such study is completed and not inconsistent 
            with studies or plans otherwise required under Puerto Rico 
            laws.
        (2) Identification of relevant puerto rico agencies.--Within 20 
    days of receiving a project submission under paragraph (1), the 
    Revitalization Coordinator shall, in consultation with the 
    Governor, identify all Puerto Rico Agencies that will have a role 
    in the permitting, approval, authorizing, or other activity related 
    to the development of such project submission.
        (3) Expedited permitting process.--
            (A) Submission of expedited permitting process.--Not later 
        than 20 days after receiving a project submission, each Puerto 
        Rico Agency identified in paragraph (1) shall submit to the 
        Revitalization Coordinator the Agency's Expedited Permitting 
        Process.
            (B) Failure to provide expedited permitting process.--If a 
        Puerto Rico Agency fails to provide an Expedited Permitting 
        Process within 20 days of receiving a project submission, the 
        Revitalization Coordinator shall consult with the Governor to 
        develop within 20 days an Expedited Permitting Process for the 
        Agency.
            (C) Implementation and prioritization.--The Revitalization 
        Coordinator shall require Puerto Rico Agencies to implement the 
        Expedited Permitting Process for Critical Projects. Critical 
        Projects shall be prioritized to the maximum extent possible in 
        each Puerto Rico Agency regardless of any agreements 
        transferring or delegating permitting authority to any other 
        Territorial Instrumentality or municipality.
    (b) Critical Project Report.--
        (1) In general.--For each submitted project, the Revitalization 
    Coordinator in consultation with the Governor and relevant Puerto 
    Rico Agencies identified in subsection (a)(2) shall develop a 
    Critical Project Report within 60 days of the project submission, 
    which shall include:
            (A) An assessment of how well the project meets the 
        criteria in subsection (a)(1).
            (B) A recommendation by the Governor whether the project 
        should be considered a Critical Project. If the Governor fails 
        to provide a recommendation during the development of the 
        Critical Project Report, the failure shall constitute a 
        concurrence with the Revitalization Coordinator's 
        recommendation in subparagraph (E).
            (C) In the case of a project that may affect the 
        implementation of Land-Use Plans, as defined by Puerto Rico Act 
        550-2004, a determination by the Planning Board will be 
        required within the 60-day timeframe. If the Planning Board 
        determines such project will be inconsistent with relevant 
        Land-Use Plans, then the project will be deemed ineligible for 
        Critical Project designation.
            (D) In the case of an Energy Project that will connect with 
        the Puerto Rico Electric Power Authority's transmission or 
        distribution facilities, a recommendation by the Energy 
        Commission of Puerto Rico, if the Energy Commission determines 
        such Energy Project will affect an approved Integrated Resource 
        Plan, as defined under Puerto Rico Act 54-2014. If the Energy 
        Commission determines the Energy Project will adversely affect 
        an approved Integrated Resource Plan, then the Energy 
        Commission shall provide the reasons for such determination and 
        the Energy Project shall be ineligible for Critical Project 
        designation, provided that such determination must be made 
        during the 60-day timeframe for the development of the Critical 
        Project Report.
            (E) A recommendation by the Revitalization Coordinator 
        whether the project should be considered a Critical Project.
        (2) Public involvement.--Immediately following the completion 
    of the Critical Project Report, the Revitalization Coordinator 
    shall make such Critical Project Report public and allow a period 
    of 30 days for the submission of comments by residents of Puerto 
    Rico specifically on matters relating to the designation of a 
    project as a Critical Project. The Revitalization Coordinator shall 
    respond to the comments within 30 days of closing the coming period 
    and make the responses publicly available.
        (3) Submission to oversight board.--Not later than 5 days after 
    the Revitalization Coordinator has responded to the comments under 
    paragraph (2), the Revitalization Coordinator shall submit the 
    Critical Project Report to the Oversight Board.
    (c) Action by the Oversight Board.--Not later than 30 days after 
receiving the Critical Project Report, the Oversight Board, by majority 
vote, shall approve or disapprove the project as a Critical Project, if 
the Oversight Board--
        (1) approves the project, the project shall be deemed a 
    Critical Project; and
        (2) disapproves the project, the Oversight Board shall submit 
    to the Revitalization Coordinator in writing the reasons for 
    disapproval.
    SEC. 504. MISCELLANEOUS PROVISIONS.
    (a) Creation of Interagency Environmental Subcommittee.--
        (1) Establishment.--Not later than 60 days after the date on 
    which the Revitalization Coordinator is appointed, the Interagency 
    Environmental Subcommittee shall be established and shall evaluate 
    environmental documents required under Puerto Rico law for any 
    Critical Project within the Expedited Permitting Process 
    established by the Revitalization Coordinator under section 
    503(a)(3).
        (2) Composition.--The Interagency Environmental Subcommittee 
    shall consist of the Revitalization Coordinator, and a 
    representative selected by the Governor in consultation with the 
    Revitalization Coordinator representing each of the following 
    agencies: The Environmental Quality Board, the Planning Board, the 
    Puerto Rico Department of Natural and Environmental Resources, and 
    any other Puerto Rico Agency determined to be relevant by the 
    Revitalization Coordinator.
    (b) Length of Expedited Permitting Process.--With respect to a 
Puerto Rico Agency's activities related only to a Critical Project, 
such Puerto Rico Agency shall operate as if the Governor has declared 
an emergency pursuant to section 2 of Act 76 (3 L.P.R.A. 1932). Section 
12 of Act 76 (3 L.P.R.A. 1942) shall not be applicable to Critical 
Projects. Furthermore, any transactions, processes, projects, works, or 
programs essential to the completion of a Critical Project shall 
continue to be processed and completed under such Expedited Permitting 
Process regardless of the termination of the Oversight Board under 
section 209.
    (c) Expedited Permitting Process Compliance.--
        (1) Written notice.--A Critical Project Sponsor may in writing 
    notify the Oversight Board of the failure of a Puerto Rico Agency 
    or the Revitalization Coordinator to adhere to the Expedited 
    Permitting Process.
        (2) Finding of failure.--If the Oversight Board finds either 
    the Puerto Rico Agency or Revitalization Coordinator has failed to 
    adhere to the Expedited Permitting Process, the Oversight Board 
    shall direct the offending party to comply with the Expedited 
    Permitting Process. The Oversight Board may take such enforcement 
    action as necessary as provided by section 104(l).
    (d) Review of Legislature Acts.--
        (1) Submission of acts to oversight board.--Pursuant to section 
    204(a), the Governor shall submit to the Oversight Board any law 
    duly enacted during any fiscal year in which the Oversight Board is 
    in operation that may affect the Expedited Permitting Process.
        (2) Finding of oversight board.--Upon receipt of a law under 
    paragraph (1), the Oversight Board shall promptly review whether 
    the law would adversely impact the Expedited Permitting Process 
    and, upon such a finding, the Oversight Board may deem such law to 
    be significantly inconsistent with the applicable Fiscal Plan.
    (e) Establishment of Certain Terms and Conditions.--No Puerto Rico 
Agency may include in any certificate, right-of-way, permit, lease, or 
other authorization issued for a Critical Project any term or condition 
that may be permitted, but is not required, by any applicable Puerto 
Rico law, if the Revitalization Coordinator determines the term or 
condition would prevent or impair the expeditious construction, 
operation, or expansion of the Critical Project. The Revitalization 
Coordinator may request a Puerto Rico Agency to include in any 
certificate, right-of-way, permit, lease, or other authorization, a 
term or condition that may be permitted in accordance with applicable 
laws if the Revitalization Coordinator determines such inclusion would 
support the expeditious construction, operation, or expansion of any 
Critical Project.
    (f) Disclosure.--All Critical Project reports, and justifications 
for approval or rejection of Critical Project status, shall be made 
publicly available online within 5 days of receipt or completion.
    SEC. 505. FEDERAL AGENCY REQUIREMENTS.
    (a) Federal Points of Contact.--At the request of the 
Revitalization Coordinator and within 30 days of receiving such a 
request, each Federal agency with jurisdiction over the permitting, or 
administrative or environmental review of private or public projects in 
Puerto Rico, shall name a Point of Contact who will serve as that 
agency's liaison with the Revitalization Coordinator.
    (b) Federal Grants and Loans.--For each Critical Project with a 
pending or potential Federal grant, loan, or loan guarantee 
application, the Revitalization Coordinator and the relevant Point of 
Contact shall cooperate with each other to ensure expeditious review of 
such application.
    (c) Expedited Reviews and Actions of Federal Agencies.--All reviews 
conducted and actions taken by any Federal agency relating to a 
Critical Project shall be expedited in a manner consistent with 
completion of the necessary reviews and approvals by the deadlines 
under the Expedited Permitting Process, but in no way shall the 
deadlines established through the Expedited Permitting Process be 
binding on any Federal agency.
    (d) Transfer of Study of Electric Rates.--Section 9 of the 
Consolidated and Further Continuing Appropriations Act, 2015 (48 U.S.C. 
1492a) is amended--
        (1) in subsection (a)(5), by inserting ``, except that, with 
    respect to Puerto Rico, the term means, the Secretary of Energy'' 
    after ``Secretary of the Interior''; and
        (2) in subsection (b)--
            (A) by inserting ``(except in the case of Puerto Rico, in 
        which case not later than 270 days after the date of enactment 
        of the Puerto Rico Oversight, Management, and Economic 
        Stability Act)'' after ``of this Act''; and
            (B) by inserting ``(except in the case of Puerto Rico)'' 
        after ``Empowering Insular Communities activity''.
    SEC. 506. JUDICIAL REVIEW.
    (a) Deadline for Filing of a Claim.--A claim arising under this 
title must be brought no later than 30 days after the date of the 
decision or action giving rise to the claim.
    (b) Expedited Consideration.--The District Court for the District 
of Puerto Rico shall set any action brought under this title for 
expedited consideration, taking into account the interest of enhancing 
Puerto Rico's infrastructure for electricity, water and sewer services, 
roads and bridges, ports, and solid waste management to achieve 
compliance with local and Federal environmental laws, regulations, and 
policies while ensuring the continuity of adequate services to the 
people of Puerto Rico and Puerto Rico's sustainable economic 
development.
    SEC. 507. SAVINGS CLAUSE.
    Nothing in this title is intended to change or alter any Federal 
legal requirements or laws.

                  TITLE VI--CREDITOR COLLECTIVE ACTION

    SEC. 601. CREDITOR COLLECTIVE ACTION.
    (a) Definitions.--In this title:
        (1) Administrative supervisor.--The term ``Administrative 
    Supervisor'' means the Oversight Board established under section 
    101.
        (2) Authorized territorial instrumentality.--The term 
    ``Authorized Territorial Instrumentality'' means a covered 
    territorial instrumentality authorized in accordance with 
    subsection (e).
        (3) Calculation agent.--The term ``Calculation Agent'' means a 
    calculation agent appointed in accordance with subsection (k).
        (4) Capital appreciation bond.--The term ``Capital Appreciation 
    Bond'' means a Bond that does not pay interest on a current basis, 
    but for which interest amounts are added to principal over time as 
    specified in the relevant offering materials for such Bond, 
    including that the accreted interest amount added to principal 
    increases daily.
        (5) Convertible capital appreciation bond.--The term 
    ``Convertible Capital Appreciation Bond'' means a Bond that does 
    not pay interest on a current basis, but for which interest amounts 
    are added to principal over time as specified in the relevant 
    offering materials and which converts to a current pay bond on a 
    future date.
        (6) Information agent.--The term ``Information Agent'' means an 
    information agent appointed in accordance with subsection (l).
        (7) Insured bond.--The term ``Insured Bond'' means a bond 
    subject to a financial guarantee or similar insurance contract, 
    policy or surety issued by a monoline insurer.
        (8) Issuer.--The term ``Issuer'' means, as applicable, the 
    Territory Government Issuer or an Authorized Territorial 
    Instrumentality that has issued or guaranteed at least one Bond 
    that is Outstanding.
        (9) Modification.--The term ``Modification'' means any 
    modification, amendment, supplement or waiver affecting one or more 
    series of Bonds, including those effected by way of exchange, 
    repurchase, conversion, or substitution.
        (10) Outstanding.--The term ``Outstanding,'' in the context of 
    the principal amount of Bonds, shall be determined in accordance 
    with subsection (b).
        (11) Outstanding principal.--The term ``Outstanding Principal'' 
    means--
            (A) for a Bond that is not a Capital Appreciation Bond or a 
        Convertible Capital Appreciation Bond, the outstanding 
        principal amount of such Bond; and
            (B) for a Bond that is a Capital Appreciation Bond or a 
        Convertible Capital Appreciation Bond, the current accreted 
        value of such Capital Appreciation Bond or a Convertible 
        Capital Appreciation Bond, as applicable.
        (12) Pool.--The term ``Pool'' means a pool established in 
    accordance with subsection (d).
        (13) Qualifying modification.--The term ``Qualifying 
    Modification'' means a Modification proposed in accordance with 
    subsection (g).
        (14) Secured pool.--The term ``Secured Pool'' means a Pool 
    established in accordance with subsection (d) consisting only of 
    Bonds that are secured by a lien on property, provided that the 
    inclusion of a Bond Claim in such Pool shall not in any way limit 
    or prejudice the right of the Issuer, the Administrative 
    Supervisor, or any creditor to recharacterize or challenge such 
    Bond Claim, or any purported lien securing such Bond Claim, in any 
    other manner in any subsequent proceeding in the event a proposed 
    Qualifying Modification is not consummated.
        (15) Territory government issuer.--The term ``Territory 
    Government Issuer'' means the Government of Puerto Rico or such 
    covered territory for which an Oversight Board has been established 
    pursuant to section 101.
    (b) Outstanding Bonds.--In determining whether holders of the 
requisite principal amount of Outstanding Bonds have voted in favor of, 
or consented to, a proposed Qualifying Modification, a Bond will be 
deemed not to be outstanding, and may not be counted in a vote or 
consent solicitation for or against a proposed Qualifying Modification, 
if on the record date for the proposed Qualifying Modification--
        (1) the Bond has previously been cancelled or delivered for 
    cancellation or is held for reissuance but has not been reissued;
        (2) the Bond has previously been called for redemption in 
    accordance with its terms or previously become due and payable at 
    maturity or otherwise and the Issuer has previously satisfied its 
    obligation to make, or provide for, all payments due in respect of 
    the Bond in accordance with its terms;
        (3) the Bond has been substituted with a security of another 
    series; or
        (4) the Bond is held by the Issuer or by an Authorized 
    Territorial Instrumentality of the Territory Government Issuer or 
    by a corporation, trust or other legal entity that is controlled by 
    the Issuer or an Authorized Territorial Instrumentality of the 
    Territory Government Issuer, as applicable.
For purposes of this subsection, a corporation, trust or other legal 
entity is controlled by the Issuer or by an Authorized Territorial 
Instrumentality of the Territory Government Issuer if the Issuer or an 
Authorized Territorial Instrumentality of the Territory Government 
Issuer, as applicable, has the power, directly or indirectly, through 
the ownership of voting securities or other ownership interests, by 
contract or otherwise, to direct the management of or elect or appoint 
a majority of the board of directors or other persons performing 
similar functions in lieu of, or in addition to, the board of directors 
of that legal entity.
    (c) Certification of Disenfranchised Bonds.--Prior to any vote on, 
or consent solicitation for, a Qualifying Modification, the Issuer 
shall deliver to the Calculation Agent a certificate signed by an 
authorized representative of the Issuer specifying any Bonds that are 
deemed not to be Outstanding for the purpose of subsection (b) above.
    (d) Determination of Pools for Voting.--The Administrative 
Supervisor, in consultation with the Issuer, shall establish Pools in 
accordance with the following:
        (1) Not less than one Pool shall be established for each 
    Issuer.
        (2) A Pool that contains one or more Bonds that are secured by 
    a lien on property shall be a Secured Pool.
        (3) The Administrative Supervisor shall establish Pools 
    according to the following principles:
            (A) For each Issuer that has issued multiple Bonds that are 
        distinguished by specific provisions governing priority or 
        security arrangements, including Bonds that have been issued as 
        general obligations of the Territory Government Issuer to which 
        the Territory Government Issuer pledged the full or good faith, 
        credit, and taxing power of the Territory Government Issuer, 
        separate Pools shall be established corresponding to the 
        relative priority or security arrangements of each holder of 
        Bonds against each Issuer, as applicable, provided, however, 
        that the term ``priority'' as used in this section shall not be 
        understood to mean differing payment or maturity dates.
            (B) For each Issuer that has issued senior and subordinated 
        Bonds, separate Pools shall be established for the senior and 
        subordinated Bonds corresponding to the relative priority or 
        security arrangements.
            (C) For each Issuer that has issued multiple Bonds, for at 
        least some of which a guarantee of repayment has been provided 
        by the Territory Government Issuer, separate Pools shall be 
        established for such guaranteed and non-guaranteed Bonds.
            (D) Subject to the other requirements contained in this 
        section, for each Issuer that has issued multiple Bonds, for at 
        least some of which a dedicated revenue stream has been pledged 
        for repayment, separate Pools for such Issuer shall be 
        established as follows--
                (i) for each dedicated revenue stream that has been 
            pledged for repayment, not less than one Secured Pool for 
            Bonds for which such revenue stream has been pledged, and 
            separate Secured Pools shall be established for Bonds of 
            different priority; and
                (ii) not less than one Pool for all other Bonds issued 
            by the Issuer for which a dedicated revenue stream has not 
            been pledged for repayment.
            (E) The Administrative Supervisor shall not place into 
        separate Pools Bonds of the same Issuer that have identical 
        rights in security or priority.
        (4) Notwithstanding the preceding provisions of this 
    subsection, solely with respect to a preexisting voluntary 
    agreement as described in section 104(i)(3) of this Act, such 
    voluntary agreement may classify Insured Bonds and uninsured bonds 
    in different Pools and provide different treatment thereof so long 
    as the preexisting voluntary agreement has been agreed to by--
            (A) holders of a majority in amount of all uninsured bonds 
        outstanding in the modified Pool; and
            (B) holders (including insurers with power to vote) of a 
        majority in amount of all Insured Bonds.
    (e) Authorization of Territory Instrumentalities.--A covered 
territorial instrumentality is an Authorized Territorial 
Instrumentality if it has been specifically authorized to be eligible 
to avail itself of the procedures under this section by the 
Administrative Supervisor.
    (f) Information Delivery Requirement.--Before solicitation of 
acceptance or rejection of a Modification under subsection (h), the 
Issuer shall provide to the Calculation Agent, the Information Agent, 
and the Administrative Supervisor, the following information--
        (1) a description of the Issuer's economic and financial 
    circumstances which are, in the Issuer's opinion, relevant to the 
    request for the proposed Qualifying Modification, a description of 
    the Issuer's existing debts, a description of the impact of the 
    proposed Qualifying Modification on the territory's or its 
    territorial instrumentalities' public debt;
        (2) if the Issuer is seeking Modifications affecting any other 
    Pools of Bonds of the Territory Government Issuer or its Authorized 
    Territorial Instrumentalities, a description of such other 
    Modifications;
        (3) if a Fiscal Plan with respect to such Issuer has been 
    certified, the applicable Fiscal Plan certified in accordance with 
    section 201; and
        (4) such other information as may be required under applicable 
    securities laws.
    (g) Qualifying Modification.--A Modification is a Qualifying 
Modification if one of the following processes has occurred:
        (1) Consultation process.--
            (A) the Issuer proposing the Modification has consulted 
        with holders of Bonds in each Pool of such Issuer prior to 
        soliciting a vote on such Modification;
            (B) each exchanging, repurchasing, converting, or 
        substituting holder of Bonds of any series in a Pool affected 
        by that Modification is offered the same amount of 
        consideration per amount of principal, the same amount of 
        consideration per amount of interest accrued but unpaid and the 
        same amount of consideration per amount of past due interest, 
        respectively, as that offered to each other exchanging, 
        repurchasing, converting, or substituting holder of Bonds of 
        any series in a Pool affected by that Modification (or, where a 
        menu of instruments or other consideration is offered, each 
        exchanging, repurchasing, converting, or substituting holder of 
        Bonds of any series in a Pool affected by that Modification is 
        offered the same amount of consideration per amount of 
        principal, the same amount of consideration per amount of 
        interest accrued but unpaid and the same amount of 
        consideration per amount of past due interest, respectively, as 
        that offered to each other exchanging, repurchasing, 
        converting, or substituting holder of Bonds of any series in a 
        Pool affected by that Modification electing the same option 
        under such menu of instruments); and
            (C) the Modification is certified by the Administrative 
        Supervisor as being consistent with the requirements set forth 
        in section 104(i)(1) and is in the best interests of the 
        creditors and is feasible.
        (2) Voluntary agreement process.--The Administrative Supervisor 
    has issued a certification that--
            (A) the requirements set forth in section 104(i)(2) and 
        section 601(g)(1)(B) have been satisfied; or
            (B) the Modification is consistent with a restructuring 
        support or similar agreement to be implemented pursuant to the 
        law of the covered territory executed by the Issuer prior to 
        the establishment of an Oversight Board for the relevant 
        territory.
    (h) Solicitation.--
        (1) Upon receipt of a certification from the Administrative 
    Supervisor under subsection (g), the Information Agent shall, if 
    practical and except as provided in paragraph (2), submit to the 
    holders of any Outstanding Bonds of the relevant Issuer, including 
    holders of the right to vote such Outstanding Bonds, the 
    information submitted by the relevant Issuer under subsection 
    (f)(1) in order to solicit the vote of such holders to approve or 
    reject the Qualifying Modification.
        (2) If the Information Agent is unable to identify the address 
    of holders of any Outstanding Bonds of the relevant Issuer, the 
    Information Agent may solicit the vote or consent of such holders 
    by--
            (A) delivering the solicitation to the paying agent for any 
        such Issuer or Depository Trust Corporation if it serves as the 
        clearing system for any of the Issuer's Outstanding Bonds; or
            (B) delivering or publishing the solicitation by whatever 
        additional means the Information Agent, after consultation with 
        the Issuer, deems necessary and appropriate in order to make a 
        reasonable effort to inform holders of any Outstanding Bonds of 
        the Issuer which may include, notice by mail, publication in 
        electronic media, publication on a website of the Issuer, or 
        publication in newspapers of national circulation in the United 
        States and in a newspaper of general circulation in the 
        territory.
    (i) Who May Propose a Modification.--For each Issuer, a 
Modification may be proposed to the Administrative Supervisor by the 
Issuer or by one or more holders of the right to vote the Issuer's 
Outstanding Bonds. To the extent a Modification proposed by one or more 
holders of the right to vote Outstanding Bonds otherwise complies with 
the requirements of this title, the Administrative Supervisor may 
accept such Modification on behalf of the Issuer, in which case the 
Administrative Supervisor will instruct the Issuer to provide the 
information required in subsection (f).
    (j) Voting.--For each Issuer, any Qualifying Modification may be 
made with the affirmative vote of the holders of the right to vote at 
least two-thirds of the Outstanding Principal amount of the Outstanding 
Bonds in each Pool that have voted to approve or reject the Qualifying 
Modification, provided that holders of the right to vote not less than 
a majority of the aggregate Outstanding Principal amount of all the 
Outstanding Bonds in each Pool have voted to approve the Qualifying 
Modification. The holder of the right to vote the Outstanding Bonds 
that are Insured Bonds shall be the monoline insurer insuring such 
Insured Bond to the extent such insurer is granted the right to vote 
Insured Bonds for purposes of directing remedies or consenting to 
proposed amendments or modifications as provided in the applicable 
documents pursuant to which such Insured Bond was issued and insured.
    (k) Calculation Agent.--For the purpose of calculating the 
principal amount of the Bonds of any series eligible to participate in 
such a vote or consent solicitation and tabulating such votes or 
consents, the Territory Government Issuer may appoint a Calculation 
Agent for each Pool reasonably acceptable to the Administrative 
Supervisor.
    (l) Information Agent.--For the purpose of administering a vote of 
holders of Bonds, including the holders of the right to vote such 
Bonds, or seeking the consent of holder of Bonds, including the holders 
of the right to vote such Bonds, to a written action under this 
section, the Territory Government Issuer may appoint an Information 
Agent for each Pool reasonably acceptable to the Administrative 
Supervisor.
    (m) Binding Effect.--
        (1) A Qualifying Modification will be conclusive and binding on 
    all holders of Bonds whether or not they have given such consent, 
    and on all future holders of those Bonds whether or not notation of 
    such Qualifying Modification is made upon the Bonds, if--
            (A) the holders of the right to vote the Outstanding Bonds 
        in every Pool of the Issuer pursuant to subsection (j) have 
        consented to or approved the Qualifying Modification;
            (B) the Administrative Supervisor certifies that--
                (i) the voting requirements of this section have been 
            satisfied;
                (ii) the Qualifying Modification complies with the 
            requirements set forth in section 104(i)(1); and
                (iii) except for such conditions that have been 
            identified in the Qualifying Modification as being non-
            waivable, any conditions on the effectiveness of the 
            Qualifying Modification have been satisfied or, in the 
            Administrative Supervisor's sole discretion, satisfaction 
            of such conditions has been waived;
            (C) with respect to a Bond Claim that is secured by a lien 
        on property and with respect to which the holder of such Bond 
        Claim has rejected or not consented to the Qualifying 
        Modification, the holder of such Bond--
                (i) retains the lien securing such Bond Claims; or
                (ii) receives on account of such Bond Claim, through 
            deferred cash payments, substitute collateral, or 
            otherwise, at least the equivalent value of the lesser of 
            the amount of the Bond Claim or of the collateral securing 
            such Bond Claim; and
            (D) the district court for the territory or, for any 
        territory that does not have a district court, the United 
        States District Court for the District of Hawaii, has, after 
        reviewing an application submitted to it by the applicable 
        Issuer for an order approving the Qualifying Modification, 
        entered an order that the requirements of this section have 
        been satisfied.
        (2) Upon the entry of an order under paragraph (1)(D), the 
    conclusive and binding Qualifying Modification shall be valid and 
    binding on any person or entity asserting claims or other rights, 
    including a beneficial interest (directly or indirectly, as 
    principal, agent, counterpart, subrogee, insurer or otherwise) in 
    respect of Bonds subject to the Qualifying Modification, any 
    trustee, any collateral agent, any indenture trustee, any fiscal 
    agent, and any bank that receives or holds funds related to such 
    Bonds. All property of an Issuer for which an order has been 
    entered under paragraph (1)(D) shall vest in the Issuer free and 
    clear of all claims in respect of any Bonds of any other Issuer. 
    Such Qualifying Modification will be full, final, complete, 
    binding, and conclusive as to the territorial government Issuer, 
    other territorial instrumentalities of the territorial government 
    Issuer, and any creditors of such entities, and should not be 
    subject to any collateral attack or other challenge by any such 
    entities in any court or other forum. Other than as provided 
    herein, the foregoing shall not prejudice the rights and claims of 
    any party that insured the Bonds, including the right to assert 
    claims under the Bonds as modified following any payment under the 
    insurance policy, and no claim or right that may be asserted by any 
    party in a capacity other than holder of a Bond affected by the 
    Qualifying Modification shall be satisfied, released, discharged, 
    or enjoined by this provision.
    (n) Judicial Review.--
        (1) The district court for the territory or, for any territory 
    that does not have a district court, the United States District 
    Court for the District of Hawaii shall have original and exclusive 
    jurisdiction over civil actions arising under this section.
        (2) Notwithstanding section 106(e), there shall be a cause of 
    action to challenge unlawful application of this section.
        (3) The district court shall nullify a Modification and any 
    effects on the rights of the holders of Bonds resulting from such 
    Modification if and only if the district court determines that such 
    Modification is manifestly inconsistent with this section.
    SEC. 602. APPLICABLE LAW.
    In any judicial proceeding regarding this title, Federal, State, or 
territorial laws of the United States, as applicable, shall govern and 
be applied without regard or reference to any law of any international 
or foreign jurisdiction.

  TITLE VII--SENSE OF CONGRESS REGARDING PERMANENT, PRO-GROWTH FISCAL 
                                REFORMS

    SEC. 701. SENSE OF CONGRESS REGARDING PERMANENT, PRO-GROWTH FISCAL 
      REFORMS.
    It is the sense of the Congress that any durable solution for 
Puerto Rico's fiscal and economic crisis should include permanent, pro-
growth fiscal reforms that feature, among other elements, a free flow 
of capital between possessions of the United States and the rest of the 
United States.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.